Key facts
- Bitcoin rose back above $60,000 after trading as low as $59,200.
- Ether dropped 7.9% on the week, trading at $1,616.
- XRP and Solana also posted significant weekly losses.
- Micron Technology's stock surged approximately 15% on an improved sales forecast.
- Analysts suggest Bitcoin's position near its 200-week moving average could indicate a prolonged downturn.
- Upcoming U.S. inflation data is a key factor for future market movements.
Bitcoin has recovered above the $60,000 mark, alongside other major cryptocurrencies like Ether and Solana, as technology stocks staged a significant rebound. The digital asset market had previously experienced a sharp downturn, with Bitcoin breaking below $60,000 due to a combination of factors including continued outflows from U.S. spot Bitcoin ETFs, a more hawkish stance from the Federal Reserve, and a strengthening U.S. dollar.
Bitcoin fell to approximately $59,200 late Wednesday before buyers pushed it back to around $60,700 by Thursday. Over the past week, Bitcoin saw a 5.4% decline. Ether also suffered, dropping 7.9% to $1,616, while XRP and Solana experienced notable weekly losses. Dogecoin and Hyperliquid's HYPE were among the worst performers, each down over 11% for the week, with Tron being the sole major token to register a gain.
The rebound in AI-related stocks, which had previously dragged down the crypto market, provided some positive momentum. Micron Technology, a major memory chip manufacturer, saw its stock jump by about 15% after its sales forecast exceeded Wall Street expectations, reigniting confidence in AI spending. This sentiment boost was reflected in a 1.8% rise in Nasdaq 100 futures and a significant surge in South Korea's Kospi index.
Analysts at FxPro noted that the pressure on cryptocurrencies has become more self-contained. Alex Kuptsikevich, Chief Market Analyst at FxPro, stated that Bitcoin's current position near its 200-week moving average, a key long-term trend indicator, could signal the onset of a prolonged "crypto winter." Historically, Bitcoin's approach to this average has preceded extended periods of depressed prices.
FxPro suggested that the immediate resistance level for Bitcoin is between $61,800 and $62,000. A break below this could see the price fall to a plausible cycle low of $55,000. The firm advised traders to prioritize risk management over chasing market direction.
The upcoming release of U.S. inflation data, specifically the Federal Reserve's preferred price gauge, is seen as a critical factor. A higher-than-expected reading would likely reinforce the Fed's hawkish stance and the strong dollar, continuing to pressure crypto. Conversely, softer inflation data could provide some relief. The market's focus has shifted from geopolitical headlines to underlying demand and ETF flows.