Bitcoin approaches $94,000, hitting a two-week high; experts caution: market sentiment remains fragile

According to Bloomberg, on Wednesday, Bitcoin (BTC) continued its rebound, reaching a two-week high and rising as much as 2.6% intraday to around $93,965, the highest level since November 17, before retreating to around $93,300. Ethereum and other major tokens also saw modest gains as the cryptocurrency market attempted to regain momentum after weeks of heavy selling. However, market sentiment remains fragile, with investors staying cautious.

Since Bitcoin broke its all-time high of $126,000 in early October, the market has undergone a sharp correction, with the total market capitalization of digital assets evaporating by more than $1 trillion. Sean McNulty, Head of Derivatives Trading for Asia Pacific at FalconX, noted, “We haven’t seen much buying interest at higher levels; market sentiment is still fragile.” Capital inflows have also been limited, with Bloomberg data showing that the 12 US Bitcoin ETFs attracted only about $59 million in inflows on Tuesday, which is considered “weak.”

Recent market volatility has been significant. On Monday, Phong Le, CEO of Strategy Inc., mentioned that the Bitcoin accumulation fund might need to sell cryptocurrency to repay debt, causing a short-term price drop. However, the company later announced the establishment of a $1.4 billion reserve fund to ensure liquidity. On Tuesday, Bitcoin prices rebounded, supported by news that the US Securities and Exchange Commission plans to launch “innovation exemption” measures for digital asset companies, and that Vanguard Group would allow ETFs and mutual funds holding cryptocurrencies to trade on its platform.

Data from Coinglass shows that about $400 million in short positions were liquidated in the past 24 hours, reflecting sharp short-term market swings. QCP Group CEO Melvin Deng stated that this rebound looks more like a “relief rally,” but Bitcoin could use it to regain some momentum. He suggests that investors who have not yet significantly positioned in Bitcoin could look for entry opportunities.

Overall, Bitcoin’s two-week high has provided a short-term boost to the market, but investor confidence has yet to fully recover. The market remains highly volatile, and future price trends will depend on institutional capital inflows and policy developments.