Bitcoin is currently trading around $89,000, fluctuating in a volatile market environments month, expectations surrounding U.S. policies led to a brief surge, but after experiencing some corrections, Bitcoin has settled around the $90,000 range .
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In recent days, Bitcoin has been trading within a range of approximately $83,000 to $95,000 . Earlier this week, BTC e to $95,000**, but then quickly dropped to the $82,000 range, reflecting high volatility within a single trading session .
Price Volatility and Market
The current market exhibits significant volatility, with daily price swings reaching up to 9.6% (around $8,000) . Earlier this month, Bitcoin recorded a one- of more than 10%, followed by a short-term rebound . The Fear & Greed Index, a measure of market sentime sits in the “Extreme Fear” category, which in past cycles has often signaled a market bottom followed by significant rallies of up to 200% within months .
Trading Volume on Major Exchanges
Due to increased volativolumes on major exchanges have surged. Binance, the world’s largest cryptocurrency exchange, has reported an average daily BTC spot trading volume of approximately $14 billion . During significant price swings, Bitcoin’s 24-hour trading volume has exceededn . Additionally, liquidity across the crypto market, including altcoins, has increased, with tsuch as Binance and Coinbase leading trading activity.
Market Reaction: Investor Sentiment and Bitcoin ETF Flows
Market sentiment is a mix of caution and optimism. Recently, U.S. President Trump announced a strategic reserve plan for Bitcoin, which initially triggered a bullish reaction, but due to uncertainty about the details, profit-taking and risk-off sentiment emerged . Consequently, while market fear levels have spiked, some investors view this “Extreme Fear” phase as ying opportunity .
Additionally, inflows into Bitcoin ETFs continue to be a major factor influencing the market. In the first 24alone, Bitcoin ETFs in the U.S. attracted around $4.2 billion in new capital, accounting for 6% of total ETF inflows during that period . BlackRock and Fidelity’s new Bitcoin ETFs have been among the most successful ETF launches in U.S. history, with BlackRock’ing the largest ETF debut ever .
By the end of January 2025, the total holdings of all U.S. spot Bitcoin ETFs surpassed $125 billion, representing approximately 6% irculating supply . However, in late 2024, weekly outflows from Bitcoin ETFs exceeded $1 billion, signaling a temporary shift in investor sentiment . Since then, ETF infsumed, strengthening the market as institutional capital continues to support Bitcoin .
