Strong fourth quarter results from Coinbase helped buoy bitcoin amid worries about inflation from disappointing CPI data earlier in the week.
BTC Shows Slight Uptick Despite Worries of Inflation and a Slump in Trading Volume
Bitcoin (BTC) is trading at $96,767.00 on Valentine’s Day, marking a 0.97% increase over the past 24 hours. Despite this slight uptick, BTC remains down 2.88% on the weekly chart, reflecting ongoing market caution. The flagship cryptocurrency has fluctuated within a 24-hour range of $95,269.71 to $97,221.95, as traders react to macroeconomic developments and corporate earnings reports.
(BTC price / Tradingview)
Coinbase Earnings Offset Inflation Worries
Bitcoin’s recovery comes in the wake of disappointing inflation data earlier this week, which briefly pressured risk assets, including crypto. However, a strong Q4 earnings report from Coinbase (COIN) yesterday helped boost sentiment. The exchange reported higher-than-expected revenue, signaling sustained institutional and retail interest in digital assets.
Trading Volume Plummets Amid Cautious Market Mood
Despite BTC’s daily gains, 24-hour trading volume has dropped significantly to $28.88 billion, marking a steep 36.16% decline from the previous day. This sharp drop in activity suggests that traders are hesitant to make aggressive moves, possibly waiting for further market clarity.
Market Capitalization Sees a Modest Uptick
Bitcoin’s market capitalization increased by 0.92%, reaching $1.91 trillion. While this signals some renewed investor interest, the overall market remains in a wait-and-see mode as economic and regulatory factors continue to play a role in sentiment.
BTC Dominance Dips as Altcoins Gain Ground
According to Tradingview, BTC dominance fell by 0.67% over the past 24 hours to 60.55%. This suggests that some investors are shifting focus to alternative cryptocurrencies, potentially searching for higher returns amid Bitcoin’s recent consolidation phase.
Futures Open Interest and Liquidation Data Reflect Uncertain Sentiment
Data from Coinglass shows that BTC futures open interest stands at $60.98 billion, down 0.23% over the past 24 hours. The slight decline suggests that leveraged traders are reducing exposure, possibly in response to market uncertainty.
Meanwhile, 24-hour liquidations totaled $18.65 million, with $7.59 million in long liquidations and $11.07 million in short liquidations. The higher volume of short liquidations indicates that bearish traders betting against BTC faced more losses, contributing to Bitcoin’s minor price recovery.
Bitcoin Market Outlook
Bitcoin’s recent price movement reflects a mixed sentiment, with positive corporate earnings from Coinbase providing short-term support while macroeconomic uncertainties linger. The $97,500 level remains a key resistance zone, and a decisive break above this mark could pave the way for further gains. Conversely, support near $95,000 will be crucial in preventing deeper corrections.
As traders assess economic data and upcoming regulatory developments, BTC’s next major move will likely be influenced by institutional inflows, liquidity conditions, and broader risk sentiment in financial markets.
