Bitcoin Rebounds as Selling Pressure Decreases

Cryptocurrency Market is Showing Signs of Recovery

Bitcoin has started to show signs of recovery as the selling pressure it experienced throughout the past week has decreased. According to recent developments based on CoinMarketCap data, the leading cryptocurrency has risen between $82,000 and $88,000 over the weekend. During this process, Bitcoin’s price increased to $86,700, with a 1% rise in the last 24 hours.

Connection Between Tech Stocks and Cryptocurrency

Charles Edwards, founder of the asset management company Capriole Fund, emphasized in a statement on X platform that both technology stocks and cryptocurrency markets have remained indecisive due to interest rate cut expectations over the past two weeks. Edwards noted that as the market changes direction, it is expected that Bitcoin may also appreciate in value.

Formation of a Bottom Level and Decrease in Selling Pressure

Swissblock analysts stated that Bitcoin has taken an important step towards forming a bottom level. Analysts pointed out that risk aversion signals have decreased and that this development is an indication of reduced selling pressure. It appears that the worst phase may be in the past.

Fed's Interest Rate Cuts and Market Expectations

Edwards reported that the likelihood of the Fed cutting rates at its December meeting has increased from 30% to 70%, indicating that uncertainties in the markets have started to dissipate. CME’s FedWatch tool is pricing the odds of a 0.25 basis point cut on December 10th at 69.3%.

Bitcoin’s Long-Term Strength

Greg Cipolaro, head of research at NYDIG, noted that ETF (exchange-traded fund) inflows and demand for digital assets during Bitcoin’s last cycle are critical factors, while expressing that the large liquidation wave in October negatively impacted these dynamics. After a challenging treatment process, there is an assessment that Bitcoin will continue to attract the interest of institutional investors.

Cipolaro stated, “As past cycles have shown, the market's direction can involve numerous sudden shocks and uncertainties. However, we believe that the long-term narrative of Bitcoin has not been compromised.”