Is $65K the New $1? Fidelity Thinks So, But Who Are We to Judge?

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Ah, the first week of February, a veritable bloodbath for investors, who now find themselves clutching at their wallets as Bitcoin [BTC] tumbles below the hallowed grounds of $60K for the very first time since the dawn of 2024. One must wonder if the cryptocurrency market has taken a leaf out of Shakespeare’s tragedies, replete with dramatic losses.

It comes as no surprise that the market sentiment has turned sourer than a forgotten pint of milk, plunging into ‘extreme fear’-a state that seems to have become the new normal. Analysts, those modern-day oracles, have collectively donned their bearish hats this week, while the occasional contrarian voice dares to whisper optimism amidst the chaos, especially following the rather shaky yet relief-inducing bounce around the $60K mark.

Will $60K hold steady?

From a technical standpoint, the price zone above $60K, reminiscent of past cycle peaks, might just be the safety net we all need to ease this tumultuous correction. It’s almost comforting, like a warm cup of tea on a rainy day.

Jurrien Timmer, the global macro maestro at Fidelity, has echoed this sentiment, suggesting that the extended sharp drawdown is merely Bitcoin pricing in Kevin Warsh’s confirmation as the next Fed chair. Ah yes, the markets do love their drama, don’t they?

“The markets spoke loudly last week to the next Fed Chair being announced. For Bitcoin, though, I continue to view $65k as an attractive entry point.”

However, let us not forget the ever-persistent shadow of gold, which might just keep Bitcoin muted in its golden glow. Timmer forecasts that gold will retain its market lead until BTC ETF inflows decide to grace us with their presence once more.

The ETF flows factor

According to Timmer’s chart-a veritable tapestry of financial intrigue-BTC ETF inflows peaked in October before contracting faster than a politician’s promises.

Meanwhile, our dear friends in metals-gold and silver ETFs-have seen their flows ascend as investors flock to safe havens amid the looming uncertainty of a new Fed chair come May. A classic case of “when in doubt, buy gold.”

Yet, analysts at Bitwise remain steadfastly bearish, warning that off-chain signals, particularly those pesky BTC ETFs, suggest our drawdown drama is far from a denouement. The analysts, led by the ever-so-serious Andre Dragosch, caution that while the market crash hasn’t led to massive ETF outflows, resilience might still prove to be a double-edged sword.

“Historically, sustained ETF outflows have tended to coincide with capitulation events, implying that a decisive shift in ETF flows could still serve as a crescendo moment for broader market capitulation.”

A recent report from AMBCrypto reveals that BTC held by ETFs dropped by a mere 6.6% despite the staggering +50% price crash since late 2025, underscoring the puzzling resilience noted by analysts. But will this resilience withstand the test of the market? Only time-and some well-placed humor-will tell.

Market fear eased, but not cleared

As we pen this narrative, Options insights paint a similar picture of cautious optimism. Notably, the 25-Delta Skew has risen slightly after dipping to a low of -28 in the volatility index, yet remains decidedly negative. It seems we’re caught in a delightful dance of despair and hope.

This tepid situation indicates that while negative sentiment has eased following the relief bounce at $60K, caution still lingers like an unwanted guest at a dinner party. In other words, Options players continue to favor puts (bearish bets for downside protection) over calls (bullish bets), a clear sign that the shadows of fear are still casting their long reach.

Final Thoughts

  • A Fidelity analyst deems BTC’s sub-$60K levels a splendid buying opportunity, invoking the wisdom of past market corrections.
  • Nevertheless, the market remains cautious, and continued ETF outflows may yet drag BTC further down into the depths of despair.

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2026-02-07 15:56