The cryptocurrency market overcomes sharp fluctuations: recovery above $65K

After a significant period of losses in recent months, the cryptocurrency market is showing signs of sustained recovery. According to Odaily, Bitcoin has rebounded above the $65,000 mark, reaching $68.04K today (+0.59% over 24 hours), while Ethereum has risen to $1.97K (+0.80% over 24 hours), demonstrating a more dynamic recovery from its lows recorded in October 2024.

Recovery After Sharp Correction

The sharp sell-off experienced by the market is driven by a complex set of macroeconomic factors. The technology sector of the stock market is under pressure, which is automatically transmitted to risk assets, including cryptocurrencies. The synchronized decline in gold and digital assets indicates a global reassessment of risk appetite, reflecting economic uncertainty and capital movement away from speculative positions.

Options Market Signals: Extreme Hedging Strategies

Unusual levels of hedging are being observed in the derivatives market. Traders are actively purchasing protective options with extremely low strike prices—some positions are even set at $20,000—indicating significant concern among market participants about further declines. This activity suggests ongoing nervousness among professional players and an attempt to re-insure themselves against potential unforeseen scenarios.

Macroeconomic Environment: Complexity and Uncertainty

The current macroeconomic situation remains a challenge for high-risk assets. The ongoing process of portfolio rebalancing between assets, often described as de-dollarization, confirms deep shifts in investor preferences. However, panic sentiment has not fully dissipated, as evidenced by continued demand for protective instruments.

Medium-Term Outlook for the Crypto Market

The current recovery is viewed as a technical rebound following the clearing of borrowed positions and short-term holdings. However, the long-term trends of the crypto market will depend on several key factors: the dynamics of macro liquidity in the global economy, the recovery of tech stocks, and the volume of institutional funding into digital assets. Full normalization is expected only when these three components align.