Bitcoin's rebound was accompanied by a surge of over 70% in the Coinbase premium index, but analysts believe the rally may be unsustainable.
PANews reported on February 9th that, according to Decrypt, Bitcoin prices have risen 12% from Friday's low of $62,822. Meanwhile, the Coinbase premium index surged over 70%, rising from -0.23% on Friday to -0.06% in early Asian trading on Monday, indicating a rebound in buying interest from US investors. Analysts generally believe that this rise is primarily driven by short covering and a short squeeze, rather than based on new bullish demand. Ryan Yoon, senior analyst at Tiger Brokers, pointed out that the Fear & Greed Index hit an extreme low of 5, indicating a strong short-covering rally. Andri Fauzan Adziima, head of research at Bitrue, also stated that this rebound is mainly a mitigating recovery driven by short covering, lacking sustained support from actual demand.
On the macroeconomic front, the Japanese prime ministerial election results propelled the Nikkei index up by 5%, easing risk aversion in some regions. However, analysts emphasize that a sustained recovery still depends on US economic data and broader macroeconomic trends. BTSE COO Jeff Mei noted that if US economic data shows growth and inflation declines, cryptocurrency prices could continue to rise. Looking at the long-term outlook, Nick Ruck, head of LVRG Research, is optimistic about institutional adoption and regulatory policies driving a rebound. Yoon, however, believes a trend reversal requires structural demand, such as national strategic reserves using Bitcoin as a substitute for gold.
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