Bitcoin recovered to approximately ~$87,000 after recent declines, while market sentiment remains classified as "extreme fear" by some indicators.

Market movement

Traders and analysts broadly interpret the intraday rebound as a technical bounce rather than a structural shift in the asset's fundamental outlook.

Data show that investors withdrew a total of $1.22 billion from spot bitcoin ETFs during the most recent outflow episode, according to market reports.

Such redemptions are cited by market participants as evidence of continuing risk aversion, despite the price recovery from prior lows earlier in the week.

Sentiment and outlook

Sentiment gauges remain anchored in the "extreme fear" territory, signaling entrenched caution among both retail and institutional participants monitoring the market.

Analysts disagree on the next price steps, with assessments varying across firms and modelling approaches. Some expect consolidation near the current range; others point to renewed volatility if macroeconomic or sector-specific news triggers further flows.

Observers note that technical recoveries have at times proved temporary when not supported by steady inflows or clear improvements in on-chain and custody demand. Market participants say ETF flows and liquidity measures will be key to confirming any durable trend.