Crypto Markets Rebound After Sharp Drop, SoFi Adds Trading

Bitcoin and other major cryptocurrencies experienced significant volatility this week, with prices dropping sharply before rebounding amid positive developments in U.S. financial integrations and regulatory progress. The market downturn, which saw Bitcoin fall below $95,000 on Wednesday, was driven by over $1 billion in liquidations and $867 million in net outflows from Bitcoin exchange-traded funds, the largest since late February. Ethereum declined by as much as 12% to around $3,100, while Solana dipped 13% to $136. Crypto-related stocks also suffered, with MicroStrategy down 7%, Coinbase Global falling 7%, and Robinhood dropping 9%. The Crypto Fear and Greed Index remained in extreme fear territory at 16, reflecting fragile investor sentiment not seen consistently since 2022.

By Thursday, markets began recovering, with Bitcoin climbing back above $105,000, up 1%, and Ethereum holding steady at $3,550. Solana rose 2% to $159. The rebound gained momentum Friday as Bitcoin surpassed $106,000, increasing over 6% in 24 hours, alongside gains in equities and metals. Analysts attributed the uptick to progress in Washington on averting a government shutdown, with congressional...