Bitcoin Bounces Back to $63,600 as Bulls Debate Bottom

Bitcoin's price has rebounded from its recent low of $59,100 to around $63,600, fueling debate among market participants about whether a bottom has been reached. Bulls point to easing geopolitical tensions and the completion of SpaceX's IPO as potential catalysts for further gains.

However, the market remains cautious due to sustained outflows from U.S. spot Bitcoin ETFs, which have recorded cumulative net outflows of approximately $5.8 billion over the past month. This has led analysts to caution that the current price level is only a 'candidate valuation floor' rather than a confirmed cyclical low.

On-chain data suggests that more than half of all circulating Bitcoin supply is currently held at a loss, which has historically been associated with market bottoms. However, researchers at CryptoQuant note that this indicator does not necessarily confirm a bottom, and significant divergence between bullish and bearish sentiment remains in the market.