Bitcoin traded just below $68,000 on Feb. 17, struggling to regain momentum after an early-month slide that bottomed close to $60,000.
Volatility drops as panic fades
Bitcoin’s 30-day implied volatility fell to an annualized 52%, in line with Volmex.
The transfer reversed a spike from roughly 48% to almost 100% throughout the Feb. 6 sell-off.
Bitfinex analysts mentioned in an e mail:
“Implied volatility has dropped, and deleveraging is operating out of steam.”
Derivatives present restricted danger urge for food
Regardless of calmer choices markets, bitcoin hasn’t held above $70,000 because the rebound.
Bitfinex mentioned funding charges nonetheless don’t sign aggressive re-leveraging.
The analysts added:
“Funding charges have but to indicate urge for food for aggressive re-leveraging and derivatives markets assist the view of a stabilization reasonably than renewed shopping for.”
Perpetual funding charges had been described as simply above zero, implying gentle bullish positioning.
ETFs prolong outflow streak
Institutional demand additionally appeared mushy.
U.S.-listed spot bitcoin ETFs noticed internet outflows of $677.98 million this month, extending a three-month redemption streak.
Macro information cited as a tailwind
CPI slowed to 2.4% year-on-year in January from 2.7% in December.
That strengthened expectations for not less than two 25 basis-point Fed cuts this 12 months.
The actual yield on the U.S. 10-year fell to 1.8%, the bottom since Dec. 1.
Bitfinex famous:
“Decrease actual yields scale back the relative carry drawback of non-yielding property resembling Bitcoin, whereas a softer greenback helps international liquidity situations.”