Bitcoin increases slightly on Valentine’s Day despite inflation and lower trading volume
Bitcoin experienced a slight increase on Valentine’s Day, reaching $96,767.00, showcasing a 0.97% rise in the last 24 hours. Despite this uptick, it is still down by 2.88% for the week, indicating hesitancy in the market. The cryptocurrency’s price fluctuated between $95,269.71 and $97,221.95 as traders reacted to economic developments and company financial reports.
The positive fourth-quarter results from Coinbase helped counter concerns about inflation following disappointing CPI data earlier in the week. Despite worries about inflation and a decrease in trading volume, Bitcoin showed a modest improvement in its value. This improvement was a relief considering the market caution prevailing during the week.
The recovery in Bitcoin’s value was especially notable after the recent inflation data that led to some pressure on risk assets, including cryptocurrencies. However, the robust Q4 earnings report from Coinbase provided a boost to market sentiment. The exchange’s report of stronger-than-expected revenue indicated ongoing interest from both institutional and retail investors in digital assets.
Even though Bitcoin saw daily gains, its trading volume plummeted significantly to $28.88 billion in 24 hours, signifying a notable 36.16% decrease. This decline in activity suggests that traders are cautious and holding back on making bold moves until they have better clarity about market conditions.
Bitcoin’s market capitalization saw a modest increase of 0.92%, reaching $1.91 trillion, showcasing renewed investor interest. However, the market as a whole remains in a watchful state as economic and regulatory factors continue to influence sentiment.
While Bitcoin’s dominance fell by 0.67% to 60.55% in the past 24 hours, altcoins are gaining ground as investors potentially seek higher returns amidst Bitcoin’s consolidation phase. Futures open interest for Bitcoin stands at $60.98 billion, down by 0.23% in the past day, indicating that leveraged traders are decreasing their exposure amid market uncertainty.
Furthermore, 24-hour liquidations amounted to $18.65 million, with long liquidations totaling $7.59 million and short liquidations at $11.07 million. The higher number of short liquidations suggests that bearish traders betting against Bitcoin faced more losses, contributing to the minor price recovery observed in Bitcoin.
In conclusion, Bitcoin’s recent price movements display a mixed sentiment, with positive corporate earnings providing temporary support amidst lingering macroeconomic uncertainties. The $97,500 level remains a critical resistance zone, and a clear breakthrough above this level could signal a more significant upward trend for Bitcoin in the near future.
