Crypto prices showed stability during Friday’s trading session in Asia, with Bitcoin nearing the $68,000 mark after a tumultuous week that challenged investors in risk markets. The upward movement was not limited to Bitcoin; XRP, Solana’s SOL, Dogecoin (DOGE), and Cardano (ADA) all recorded gains of up to 2%. However, Ethereum (ETH) lagged slightly, experiencing a small dip and hovering below the important psychological threshold of $2,000. Traders appeared to view this level as one that must be defended, rather than celebrating the current prices.
The market’s recent behavior hinted at a relief rally rather than a definitive turnaround. After several weeks of significant volatility, price movements have started to occur in waves. Initial upward push invites dip buyers, yet selling pressure emerges as the price climbs to levels where previously trapped holders seek to mitigate their losses.
Despite the recent bounces appearing somewhat more stable, market analysts noted that forced selling seems to be decreasing, even if substantial conviction buying has yet to return. Key macroeconomic factors and geopolitical tensions have contributed to traders’ cautious sentiments. Gold stabilized near $5,000 per ounce after experiencing gains over two sessions, as concerns over increasing risks in the Middle East weighed heavily on investor sentiment. U.S. President Donald Trump recently indicated that he would allow a window of 10 to 15 days for discussions regarding a nuclear deal with Iran, coinciding with reports of U.S. troop buildups in the region. This combination has sustained demand for safe-haven assets while complicating matters for riskier assets.
Wenny Cai, COO at SynFutures, noted that traders are reassessing their strategies following the release of the latest Federal Reserve minutes, which carried a more hawkish undertone. Although further interest rate hikes are not imminent, Cai emphasized that policymakers have reintroduced the possibility if inflation does not show signs of cooling. This shift has helped bolster the dollar and tighten financial conditions. Consequently, equities have softened, while investors gravitate back towards cash-like instruments and short-duration treasuries.
FxPro’s chief market analyst, Alex Kuptsikevich, maintained a bearish outlook on the broader market conditions. He suggested that with U.S. stocks sounding a more cautious tone, the likelihood of revisiting previous lows has increased, suggesting a return to levels last observed in the second half of 2024. Kuptsikevich highlighted that Ethereum remains on a long-standing support line dating back to 2020 and aligning with the crucial $2,000 area. However, he warned that a definitive breakdown would require confirmation through a dip below recent lows around $1,500.
Beneath the surface, various indicators imply that large holders may be positioning themselves to sell during price surges. CryptoQuant has noted record levels of Bitcoin inflows from significant holders to Binance, a trend that often precedes increased spot supply. Research firm K33 has likened the current state of the market to the later stages of the 2022 bear market, which eventually led to a prolonged phase of consolidation.
The overall result is a crypto market capable of bouncing back yet struggling to translate these rebounds into sustained trends until demand from buyers outstrips the selling pressure at the next significant price points.
