Crypto market drifts, but the tide may be turning

Market picture

The crypto market has moved in waves over the past two and a half weeks, experiencing increased selling on the approach to $3.3 trillion but also finding support on the dips to $3.10 trillion. By the end of the week, it was up to $3.20 trillion.

The Cryptocurrency Fear and Greed Index has also been fluctuating between fear and neutral since the beginning of February, with recent readings of 49. We continue to believe that without a dip in extreme fear, the crypto market will struggle to find the foundations for a rally.

Bitcoin recovered to $97,000 by the end of the week, having been supported by buyers on Tuesday’s fall to $93,300. After November's impulse, BTC has stuck to a consolidation pattern, remaining overall bullish but reluctant to move to the next level for the time being.

News background

According to JAN3 CEO Samson Mow, BTC’s movement looks “manufactured” and possibly suppressed. He believes a large seller in the market is getting rid of his BTC holdings.

CryptoQuant CEO Ki Yong Ju, citing historical data, said the bullish phase of the Bitcoin market will continue even with a 30% drop from the high to around $77,000. Prices are influenced by macroeconomic factors, which do not rule out a correction.

Strategy announced a $2 billion convertible bond offering. The proceeds will be used for general corporate purposes, including bitcoin purchases.

CBOE filed with the US Securities and Exchange Commission (SEC) to list options on three Ethereum-based spot ETFs.

US exchange Binance.US has resumed US dollar deposits and withdrawals after nearly 18 months of restrictions. Binance.US suspended its dollar operations in the summer of 2023 following a lawsuit by the SEC, which accused Binance of failing to register its US unit.

The Nigerian authorities filed a lawsuit against Binance for a total of $81.5 billion, seeking $79.5 billion in damages for alleged economic losses and $2 billion in unpaid taxes over two years.

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