Bitcoin has seen a 2% gain, pushing towards $68,000, yet market sentiment remains gripped by "extreme fear" for the 20th consecutive day. Analysts at Bitwise suggest Bitcoin is still "significantly undervalued" relative to global money supply and macro growth prospects.
Despite recent consolidation, signs of optimism include prediction markets placing an 80% chance on the U.S. Clarity Act passing in 2026, a potential catalyst for alternative tokens. However, large Bitcoin holders moving assets to exchanges signal potential selling pressure. Macro indicators suggest continued money supply growth, a backdrop not typically associated with extended bear markets, and recession odds have decreased.
Traders are anticipating key U.S. economic data, including the core PCE index, which could influence Federal Reserve policy and market direction. Volatility is expected as the market digests this information heading into the weekend.
