Bitfinex: Bitcoin Experiences Volatility Over Past Weekend, Major Crypto Assets Enter Correction Phase
In Brief
Bitfinex notes that Bitcoin has traded between $91,000 and $102,000 for over 90 days, while most major assets have entered a corrective phase following their rallies in late 2024.
Bitfinex released its latest market analysis, noting that Bitcoin has remained in a narrow trading range over the past week, fluctuating between $91,000 and $102,000 for more than 90 days, as market momentum has continued to slow.
Volatility spiked on Friday, February 21st, after news of the ByBit hack and a sharp sell-off in S&P 500 options expiration, which triggered a 4.7% drop to nearly $95,000 before Bitcoin regained some ground over the weekend.
Across the broader cryptocurrency market, most major assets have entered a corrective phase following their rallies in late 2024. Bitcoin (-5.9%), Ethereum (-16.9%), and Solana (-33.1%) all experienced declines in February, following the price surges seen in November and December 2024. Memecoins, which had surged in December, have also sharply dropped by -37.4%.
This downturn has been compounded by macroeconomic uncertainty, along with Bitcoin’s increasing correlation to traditional markets. The S&P 500’s inability to rise above the 6,000 level has dampened risk appetite across various asset classes, further reducing speculative activity in risk assets.
Bitfinex also highlighted a slowdown in institutional demand. Bitcoin exchange-traded funds (ETF) inflows, which reached a peak of 18,000 BTC per day in November 2024, have now reversed into net outflows, with $360 million withdrawn on February 20th alone. This drop in institutional engagement, coupled with a marked decline in leveraged trading activity, points to a broader contraction in the market.
Bitcoin Faces Critical Crossroads Amid US Economic Challenges And Rising Inflation Expectations
According to the firm, Bitcoin is at a pivotal point after almost 90 days of consolidation. As market participants await a catalyst, Bitcoin’s next move is likely to be influenced by macroeconomic trends, which could determine its direction. The US economy is also facing growing challenges, as weakening consumer confidence and rising inflation expectations may hinder the Federal Reserve’s efforts to curb price growth. The latest University of Michigan survey shows a drop in consumer sentiment, reaching its lowest level in over a year.
Households are now anticipating higher inflation, with expectations rising to 4.3% over the next year, up from 3.3% the previous month. This shift in sentiment indicates that consumers are becoming more cautious, potentially leading to a slowdown in spending and economic activity. Additionally, the White House’s proposed tariffs on imports are adding to inflationary pressures, partially undoing the progress made in disinflation over the past two years, according to Bitfinex.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
