Bitcoin Rebounds Above $64,800 as Short-Term Momentum Improves Despite Weak Yearly Performance

Global Markets - Crypto | EcoPulse24

Bitcoin traded at $64,850 on Friday, February 6, rising $2,138, or 3.41%, compared with the previous session, extending a strong short-term recovery that has gathered pace over recent weeks.

Short-Term Surge Gains Momentum

Over the past four weeks, Bitcoin has climbed nearly 29%, marking one of its strongest monthly performances since late 2024. The rebound reflects a combination of technical recovery, short-covering, and renewed risk appetite following stabilization in global financial markets.

The recent advance has helped Bitcoin recover from earlier losses driven by tighter global liquidity conditions, institutional outflows from spot ETFs, and rising real yields in the United States.

Longer-Term Trend Remains Under Pressure

Despite the recent rally, Bitcoin remains significantly weaker on a longer-term basis. Over the past 12 months, the cryptocurrency is still down 32.78%, underscoring the structural challenges facing digital assets amid:

• Prolonged tight monetary policy

• Reduced speculative liquidity

• A shift in institutional capital toward AI-linked equities

• Persistent regulatory uncertainty across major markets

This divergence highlights the contrast between short-term trading momentum and long-term capital allocation trends.

Market Outlook: Cautious Optimism

According to Trading Economics global macro models and analysts’ expectations, Bitcoin is projected to rise further in the coming months, assuming financial conditions stabilize and risk appetite improves:

• End of current quarter forecast: $80,476

• 12-month forecast: $88,401

These projections suggest potential upside driven by expectations of eventual monetary easing, slower inflation, and improved liquidity conditions, though volatility is expected to remain elevated.

Key Factors to Watch

Market participants continue to monitor several critical variables that could shape Bitcoin’s trajectory:

• US monetary policy direction and timing of rate cuts

• ETF flow dynamics, particularly institutional demand trends

• Global risk sentiment, especially in equities and technology

• Liquidity conditions and US dollar strength

Any renewed tightening or sustained dollar strength could limit upside momentum, while easing financial conditions may support further gains.

Bottom Line

Bitcoin’s move above $64,800 signals a short-term technical recovery, but the broader trend remains fragile. While forecasts point to higher levels later this year, the asset continues to trade at the intersection of macro policy, liquidity cycles, and shifting investor preferences, keeping volatility firmly in place.