QCP: Bitcoin rebounds after dropping to $72,900, US government shutdown ends boosting the market

DeepFlowTech · 2026-02-04T10:00:07+00:00

Bitcoin's recent volatility has intensified, dropping to $72.9K at one point, but the price rebounded and tested $75K following the U.S. House of Representatives passing the funding bill. Although the risk of a government shutdown has eased, a new deadline remains, and market attention on Trump's nomination of the Federal Reserve Chair has increased. Implied volatility in the options market is high, reflecting concerns about a sharp decline, with $75K becoming a key turning point.

DeepFlowTech

2026-02-04 10:00:07

Abstract generation in progress

Deep Tide TechFlow News, February 4th, QCP released a briefing stating that Bitcoin has recently experienced increased volatility, dropping to around $72,900, hitting a new low since the US elections. It then rebounded after the US House of Representatives passed a $1.2 trillion funding bill and ended part of the government shutdown. Currently, the price is testing the $75,000 level again.

Although the risk of a government shutdown has temporarily eased, the Department of Homeland Security funding has only been extended until February 13th, and the risk of a new deadline remains. Meanwhile, Trump has nominated Kevin Warsh as the next Federal Reserve Chair, and his inclination towards faster balance sheet reduction has attracted market attention, potentially affecting risk asset performance and the dollar trend.

Options market data shows that even if the spot price rebounds, implied volatility in the front end remains high, indicating that the market continues to price in near-term risk premiums. The skew is notably steep on the downside, reflecting market concerns about a sharp decline. Analysts believe that $75,000 is a key turning point; if it holds and funding conditions normalize, it could be a reasonable level to increase risk. If it breaks below, the market may quickly shift to a defensive stance.

BTC-3.21%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.