 ▲ Bitcoin (BTC), investor, crash / AI-generated image © |
As the cryptocurrency market, including Bitcoin (BTC) and XRP (Ripple), continues a sluggish sideways trend for the past ten days without finding clear direction, experts are warning that the current stagnation phase may be merely a temporary pause within a bearish market following a sharp decline and could serve as a springboard for further losses.
According to investment media outlet FXStreet on February 16 (local time), the digital asset market has been trapped within a range between $2.3 trillion and $2.4 trillion over the past 10 days. The total market capitalization stands at approximately $2.35 trillion, hovering around levels seen a week ago. Although slight upward momentum has been detected in recent days, it remains too fragile to signal an optimistic trend reversal. Market leader Bitcoin is trading below $69,000 and continues attempting to break through resistance, but it has been unable to achieve a meaningful rebound after hitting a strong ceiling at $71,000.
According to data analytics platform CryptoQuant, short-term Bitcoin investors have incurred losses totaling $2.3 billion over the past week, marking the largest figure since the 2021 price crash. On-chain indicators have yet to present a definitive signal that a structural bottom has formed, though some analyses suggest that prices are approaching what is considered an undervalued zone.
Experts remain divided on the timing of a market rebound. Asset manager Bitwise stated that the advancement of real-world asset (RWA) tokenization and the entry of corporate investors into decentralized finance (DeFi) will serve as key drivers of recovery, adding that the groundwork for exiting the bear market is gradually being established. In contrast, Morgan Creek co-founder Anthony Pompliano warned that volatility could expand in the near term due to unstable global economic conditions, advising that the bull market may arrive later than expected and that investors should exercise particular patience.
Various other factors influencing market sentiment are also being observed. According to Arkham data, the Bhutanese government has been selling its Bitcoin holdings for three consecutive weeks, recently disposing of 100 BTC worth approximately $6.8 million while still holding about 5,600 BTC. Meanwhile, Coinbase, the largest cryptocurrency exchange in the United States, reported a net loss of $667 million in the fourth quarter due to a decline in the value of its digital asset portfolio. Additionally, darknet platforms have reportedly been shifting en masse to the privacy coin Monero (XMR) despite delisting measures imposed by centralized exchanges.
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