Bitcoin price back at $90K: Is the bear market behind us?

2 days ago

Key takeaways:

Bitcoin roseate supra $90,000, yet options information amusement traders are not comfy with downside hazard exposure.
Bitcoin spot ETF outflows and debased leverage request suggest investors stay cautious astir near-term gains.

Economic uncertainty caps Bitcoin terms rebound

Bitcoin (BTC) jumped supra $90,000 connected Saturday, prompting traders to question whether determination is capable momentum to reclaim the $95,000 level for the archetypal clip successful 7 weeks.

Even arsenic the S&P 500 traded conscionable 1.3% beneath its all-time high, investors grew acrophobic astir worsening economical conditions, particularly aft electric-vehicle automaker Tesla (TSLA US) reported disappointing sales.

The tech-heavy Nasdaq scale futures failed to reclaim the 26,000 level, arsenic the assemblage remains torn betwixt optimism astir artificial quality and risks tied to weaker US occupation marketplace data.

Tesla’s full conveyance deliveries reached 418,227 units successful the 4th quarter, a 15% diminution from the 495,570 vehicles delivered successful the aforesaid play past year. Tesla shares fell 2.5% connected Friday and are down 12.2% from their all-time high.

In contrast, mean optimism emerged from China aft shares of Chinese tech institution Baidu (BIDU US) surged 15%. The institution filed for an IPO with the Hong Kong banal speech to rotation disconnected its artificial quality spot unit, Kunlunxin.

The tech assemblage has intelligibly underpinned Nasdaq’s 20% gains successful 2025, but traders interest valuations person go excessively stretched.

BTC hits multi-week highs, but leverage stays cool

Demand for leveraged BTC bullish positions remained level connected Saturday, adjacent arsenic Bitcoin rebounded to its highest levels since Dec. 12.

Bitcoin’s terms has remained confined to a comparatively choky 6% scope implicit the past 20 days, leaving investors progressively anxious arsenic the breakout supra absorption continues to beryllium delayed.

The Bitcoin futures ground complaint stood beneath the neutral threshold connected Friday, signalling a deficiency of assurance among bulls.

The existent 4% annualized premium implicit spot markets reflects traders’ concerns that US import tariffs could measurement connected the broader economy. On the affirmative side, the astir caller retest of the $85,000 level connected Dec. 19 was not capable to trigger broader bearish sentiment.

The deficiency of request for leveraged bullish Bitcoin positions tin besides beryllium linked to selling unit successful Bitcoin spot exchange-traded funds (ETFs). Since Dec. 15, these products person recorded much than $900 cardinal successful net outflows.

Meanwhile, golden ETFs person posted 7 consecutive weeks of nett inflows, perchance signalling weaker assurance successful US economical maturation amid rising concerns implicit authorities fiscal conditions.

Skepticism lingers adjacent $90,000, but panic is absent

To find whether Bitcoin whales and marketplace makers person turned bullish pursuing the 3.2% summation implicit 2 days, it is indispensable to analyse enactment successful the BTC options market.

Bitcoin enactment (sell) options traded astatine a premium connected Saturday, arsenic nonrecreational traders demanded higher compensation for downside terms exposure.

Although the indicator remains wrong the neutral -6% to +6% range, it is inactive acold from turning bullish, which is typically signalled by an inverse put-call skew. BTC derivatives constituent to lingering skepticism adjacent the $90,000 level, though determination are intelligibly nary signs of excessive fear.

Inflation remains a large root of interest arsenic the US authorities plans to rotation retired taxation incentives to stimulate the economy. Bond futures markets are pricing conscionable a 16% probability that involvement rates volition autumn to 3.25% oregon little by April, according to the CME FedWatch Tool.

For now, Bitcoin derivatives traders bash not expect further terms gains, and assurance is apt to rebuild dilatory pursuing a month-long consolidation adjacent $89,000.

This nonfiction is for wide accusation purposes and is not intended to beryllium and should not beryllium taken as, legal, tax, investment, financial, oregon different advice. The views, thoughts, and opinions expressed present are the author’s unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph. While we strive to supply close and timely information, Cointelegraph does not warrant the accuracy, completeness, oregon reliability of immoderate accusation successful this article. This nonfiction whitethorn incorporate forward-looking statements that are taxable to risks and uncertainties. Cointelegraph volition not beryllium liable for immoderate nonaccomplishment oregon harm arising from your reliance connected this information.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision. While we strive to supply close and timely information, Cointelegraph does not warrant the accuracy, completeness, oregon reliability of immoderate accusation successful this article. This nonfiction whitethorn incorporate forward-looking statements that are taxable to risks and uncertainties. Cointelegraph volition not beryllium liable for immoderate nonaccomplishment oregon harm arising from your reliance connected this information.

View source