06.02.202611:59:55UTC+00Bitcoin Halts Selloff

Bitcoin rose above the $65,000 mark, recovering from its two-year low of $60,000 experienced earlier in the day this past Friday. This rebound came as investors capitalized on lower prices following a widespread downturn across cryptocurrencies in early February. Despite this recovery, Bitcoin remains roughly 30% down for the year, trading at nearly half its peak value from four months ago. This significant drop has been exacerbated by a broader selloff in various speculative assets, further eroding its perceived value. The increased presence of Bitcoin in institutional portfolios has made it more susceptible to risk-reduction strategies, especially prevalent amid heightened market volatility and stricter margin requirements in both precious and base metal derivatives markets. Additionally, the decline in cryptocurrency holdings by retail investors can also be attributed to a widening array of speculative trading alternatives, such as leveraged ETFs focused on AI companies, zero-day equity options, and the growth of betting markets.