Bitcoin Rebounds After FTX Repayment News, Eyes $100K

Bitcoin (BTC) has shown resilience in the current session, with its price climbing nearly 1% and trading just above the $96,000 level. This recovery comes after a significant drop on Tuesday, when the price fell to an intraday low of $93,430 before rebounding to close at $95,634.

Analysts attribute the Tuesday decline to a knee-jerk reaction to news that FTX has begun repaying customers with account balances of $50,000 or less. The defunct exchange also announced that repayments to customers with account balances over $50,000 will start on May 30. The exchange began repaying creditors on Tuesday, with claims of under $50,000 receiving funds through Kraken and Bitgo.

Despite the recent volatility, Bitcoin's price has been trading between $94,000 and $100,000 for over two weeks, indicating a consolidation phase. However, the flagship cryptocurrency faces several hurdles that have weighed on investor sentiment and kept prices lower. According to analysts, Bitcoin must reclaim the $100,000 level for bullish sentiment to return. A move past this level could push the price towards $105,000 and potentially retest its all-time high. However, if sellers take control, BTC could drop to $90,000, with a break below this level leading to a significant correction.

Bitcoin's volatility has hit multi-month lows, with volumes, yields, options premiums, and ETF flows moving to levels not seen since before the US elections. As of February 13, 37% of the top US companies exhibited greater 30-day volatility than BTC. Analysts note that extracting meaningful insights from the current market remains challenging, as Bitcoin remains range-bound with declining activity and yields. There are no clear catalysts in sight, indicating that price action could remain muted.

CryptoQuant has noted that BTC is flowing out of derivative exchanges and going into spot exchanges, suggesting the beginning of a bearish phase. Outflows from exchange-traded products suggest a cautious market. Bitcoin ETPs registered outflows of over $430 million during the previous trading week, triggered by macroeconomic concerns, an escalating trade