Bitcoin Rebounds After Falling to $62,500 Low, Crypto Market Still Extremely Fearful

TradingKey - During the U.S. trading session on February 24, Bitcoin (BTC) dropped to $62,500, dragging down the broader crypto market. Today's Fear and Greed Index rose to 11, remaining in the "Extreme Fear" category. Over the past 24 hours, more than 120,000 traders were liquidated in the cryptocurrency market.

During the Asian trading session on February 25, Bitcoin rebounded by over 5% from its lows, peaking above $66,000 and currently remaining above the $65,000 level.

On the Polymarket platform, traders have significantly adjusted their expectations for Bitcoin's performance in February. Since the potential for upside has largely been priced in, traders appear to be adopting a defensive strategy as the month draws to a close.

Andri Fauzan Adziima, Head of Research at Bitrue, noted that the $60,000-$63,000 range is a key support zone for Bitcoin. If it breaks below $60,000, in a worst-case scenario, accelerating cascading liquidations fueled by a deteriorating macroeconomic backdrop could open the door for a decline toward the mid-$55,000 level or even as low as $47,000.

Marion Laboure, a research analyst at Deutsche Bank, stated in a recent report that the divergence between the performance of Bitcoin and gold suggests that Bitcoin is no longer playing the role of "digital gold."