Bitcoin rebounded above $90,000 midweek as crypto markets steadied after a sharp sell-off, while French banking group BPCE prepared to open crypto trading to millions of customers and policymakers from Japan to China continued to shape sentiment. Analysts were split on whether the latest bounce marks a durable bottom or a pause within broader consolidation.
Banking and policy developments
France’s Groupe BPCE plans to enable retail clients to buy and sell Bitcoin (BTC), Ether (ETH), Solana (SOL) and USD Coin (USDC), expanding access to digital assets for millions of customers. The move underscores ongoing integration of crypto within mainstream financial platforms across Europe.
In Asia, China’s central bank reaffirmed the country’s 2021 ban on cryptocurrency trading and vowed to crack down on stablecoins, citing signs of renewed activity. Separately, U.S. lawmakers continued to advance crypto-related legislation, though progress remains incremental.
Bitcoin rebounds as markets consolidate
BTC/USD posted an 8% daily gain on Wednesday, recovering from a weekend slide that briefly pushed prices below $84,000. By Tuesday U.S. morning hours, Bitcoin had reclaimed the $90,000 handle and was recently near $91,000, trimming losses from the prior two sessions. The latest bounce followed a drawdown of up to 36% from the Oct. 6 all-time high near $126,000.
Market breadth remained uneven. Total crypto market capitalization hovered around the low-$3 trillion range after dipping below $3 trillion earlier in the week. Derivatives data showed roughly $400 million in long positions liquidated during the downturn, reflecting thin liquidity and elevated leverage. Sentiment gauges stayed in “fear” territory, with a modest uptick from deeply depressed levels.
Equities and government bonds stabilized after a global risk-off move linked to expectations of tighter policy in Japan. The Kobeissi Letter noted that volatility has frequently clustered around late-week and weekend sessions, with sizable crypto moves on Friday and Sunday nights.
Drivers and outlook: mixed signals
Arthur Hayes, former BitMEX CEO, attributed the latest bout of volatility to shifting expectations around the Bank of Japan. Meanwhile, some traders cited unverified chatter about a more crypto-friendly U.S. Federal Reserve chair as a factor behind Wednesday’s crypto bid; BTC briefly eyed the $94,000 region during the move.
Technical analysts highlighted the first “velocity RSI” reversal signal for Bitcoin since 2022, suggesting a potential local bottom after the recent washout. Others warned that BTC slipping below $90,000 at times and weakness across select altcoins, including Zcash, keep downside risks in play. Coinbase Institutional projected scope for a stronger year-end for Bitcoin, though the forecast remains contingent on macro conditions and liquidity.
Corporate and market microstructure
Shares of American Bitcoin Corp., a U.S.-listed mining company, plunged at the open on Tuesday, dropping more than 40% within the first half hour of trading before stabilizing. The move underscored the ongoing sensitivity of crypto-exposed equities to spot price swings and funding conditions.
On corporate treasury strategy, MicroStrategy CEO Phong Le reiterated that selling Bitcoin would be a last-resort option, considered only if the firm’s adjusted net asset value fell below one and access to capital dried up.
Key levels to watch
- Bitcoin support: $90,000 psychological level; sub-$90,000 tests raise risk of extended consolidation.
- Bitcoin resistance: $94,000 near-term area, followed by recent two-week highs; reclaiming these levels would strengthen the rebound case.
- Market structure: Liquidity and leverage remain pivotal; derivatives positioning could amplify moves into late week.