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Despite extreme fear in the market, the total cryptocurrency market capitalization has held above the $2.3 trillion level, confirming short-term downside support, analysts said.
According to investment-focused outlet FXStreet on February 12 (local time), the total crypto market cap rebounded 0.9% after an intraday plunge, recovering to $2.3 trillion. Major assets including Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and XRP (Ripple) are believed to have reached meaningful support zones, raising the possibility of short-term range-bound movement within these levels. At the same time, some optimists have once again mentioned expectations of a return to a bull market.
Market sentiment has contracted to historic lows. The Fear & Greed Index recorded a reading of 5, matching its lowest level since August 2019. Although the index also fell below 10 in June 2022, that extreme fear zone did not immediately translate into the optimal buying opportunity. However, as a rebound and sideways movement followed after that period, some observers suggest the current phase could similarly lead to consolidation after a short-term correction.
Bitcoin is trading around the $67,000 level, continuing a pattern of gradually lower intraday highs and lows. However, it remains well above the extreme low recorded last week. This trend suggests the possibility of retesting last week’s low, with analysts indicating a high probability that Bitcoin will form a range between $60,000 and $70,000 over the coming weeks.
Specific factors behind the market downturn were also cited. According to Wintermute, Bitcoin has erased all gains accumulated since Donald Trump’s victory in the U.S. presidential election in November 2024. Pressure from U.S. capital, large-scale outflows from spot Bitcoin ETFs, and liquidity shifting toward the artificial intelligence (AI) sector were identified as key causes. Glassnode assessed that the market has entered a mid-cycle correction phase similar to the 2015–2017 cycle, suggesting that last October’s peak may have signaled the end of the bull market.
Grayscale stated that Bitcoin is no longer moving in tandem with gold and is reacting more sensitively to technology stock trends in the short term. According to Goldman Sachs’ fourth-quarter report, the firm reduced its holdings in spot Bitcoin ETFs by 39.4% and its investments related to spot Ethereum ETFs by 27.2% during the quarter, instead reallocating to newly launched altcoin ETFs. Meanwhile, CoinDesk reported that Arkham Exchange, a trading platform established by Arkham Intelligence, will suspend operations due to low user activity.
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