Have we reached peak cryptocurrency bearishness?
|Cryptocurrencies languish in quiet period
An uneasy calm pervades cryptocurrencies, which have seen the wave of selling pause for now. Both Bitcoin and ether have managed to eke out some small gains in early trading on Monday, though like all other markets the US holiday means liquidity is rather thin on the ground. The late January/early February selloff certainly seemed to have the makings of a final flush, with Bitcoin down nearly 40% in less than a month, but only time will tell.
Crypto whale movements
Reports that crypto whale Garrett Jin continues to sell off his holdings might actually be the moment that crypto bulls have been looking for. Outflows often reach a peak near the lows, and given the ‘death of Bitcoin’ headlines doing the rounds of late, perhaps bearishness has finally reached a peak to allow a durable low to form.
What we’re watching – All eyes on Bitcoin trying to break $70,000
The relative quiet in cryptocurrencies is a notable change from the frenetic selling of recent months, but it will take more than that for a recovery to begin. Precious metals, those recent stealers of Bitcoin’s allure, continue to make gains, though in a much more measured fashion than we saw earlier in the year. The $60K peaks from 2021 could be as good a place as any for Bitcoin to start a new journey higher, but the ‘crypto winter’ of 2025/26 needs both price and interest to revive if a bounce is to be sustained.
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