- Bitcoin trades between $68,000 and $72,000 after a drop near $60,000, as traders wait for US jobs and inflation data
- A Bithumb system error briefly sent $44 billion in Bitcoin to users, leading South Korean regulators to call for tighter oversight
Bitcoin traded below $70,000 during Asian hours on Tuesday, giving back part of a recent rebound from lows near $60,000. The world’s largest cryptocurrency has struggled to maintain upward momentum as traders turn wary ahead of key U.S. economic releases. At the same time, a technical mishap at a major South Korean exchange involving tens of billions of dollars’ worth of bitcoin has intensified debate over regulatory safeguards in digital asset markets.
Bitcoin holds in a tight range as traders await U.S. data
Recent trading has seen Bitcoin move largely within a band of $68,000 to $72,000, following a volatile stretch the previous week. During that earlier slide, the token dropped to roughly $60,000, a level last seen since October 2024, before staging a relief rally that briefly lifted prices back above $70,000. The recovery, however, has not yet translated into a sustained upward trend.
The earlier decline was closely tied to forced liquidations, as leveraged positions were unwound in response to the rapid price drop. These liquidation-driven moves amplified selling pressure, adding to intraday swings and underscoring how margin usage can intensify volatility in the cryptocurrency market. With leveraged bets pared back, spot prices have stabilized, but conviction among traders remains limited as they wait for new macroeconomic signals.
Investors are now focusing on upcoming U.S. economic data that could influence expectations for Federal Reserve interest rate policy. Monthly U.S. jobs figures, whose publication was delayed by a brief government shutdown, are scheduled for release on Wednesday. Market participants see the report as a key input for assessing the strength of the labor market and, by extension, the path of monetary tightening or easing.
Later in the week, attention will shift to Friday’s U.S. Consumer Price Index data, a widely followed gauge of inflation. CPI outcomes could reshape assumptions about the timing and scale of possible interest rate cuts. For assets such as Bitcoin, which are often sensitive to shifts in liquidity conditions and risk appetite, any change in rate-cut expectations could translate into renewed price swings. Traders are therefore reluctant to take large directional positions until they see the jobs and inflation figures.
Fed leadership uncertainty adds another layer for Bitcoin markets
Beyond the immediate data releases, markets are also watching developments at the Federal Reserve itself. President Donald Trump has nominated Kevin Warsh to serve as the next Fed chair, raising questions about how a potential change at the top of the central bank could affect monetary policy. Warsh is perceived by many traders as potentially more hawkish, though the precise contours of policy under his leadership remain uncertain.
This pending shift in Fed leadership is adding another factor to consider for participants in Bitcoin and other speculative markets. A tilt toward a more restrictive stance could mean tighter liquidity conditions, which in turn may pressure risk-sensitive assets. Market participants are weighing how such a policy mix might influence demand for digital assets that have often benefited from periods of ample liquidity and lower real interest rates.
As a result, Bitcoin’s current consolidation near the upper end of its recent range reflects not only the aftermath of leveraged liquidations but also hesitation driven by overlapping sources of macro uncertainty. Until both the economic data and the leadership questions at the Fed become clearer, trading is likely to remain cautious, with price action contained between recent support near $68,000 and resistance around $72,000.
South Korean exchange error sparks renewed calls for oversight
While macroeconomic concerns have shaped global sentiment toward Bitcoin, a separate development in South Korea has drawn attention to operational and regulatory risks in the digital asset industry. Bithumb, one of the country’s largest cryptocurrency exchanges, mistakenly distributed about $44 billion worth of Bitcoin to users as part of a promotional reward event. Instead of crediting small cash prizes, the exchange’s system allocated 620,000 Bitcoins to customer accounts on Friday.
The error quickly triggered a sharp sell-off as recipients moved to liquidate the unexpectedly credited balances before the mistake was identified. According to information released after the incident, Bithumb was able to recover 99.7% of the coins, limiting the net outflow. Even so, the magnitude of the misallocation and the brief market disruption have raised serious concerns among regulators and industry observers.
Lee Chan-jin, governor of the Financial Supervisory Service, pointed to the episode as evidence of structural weaknesses in electronic systems handling virtual assets. He argued that the event demonstrated the need for stronger oversight tools and clearer legislative frameworks to place digital asset operations under more robust regulatory control. The incident has therefore become a focal point in discussions over how to update rules for exchanges that manage vast quantities of Bitcoin and other cryptocurrencies.
Regulators are examining how an internal system failure could generate such an outsized transaction volume and what safeguards should be in place to prevent similar occurrences. The case illustrates how technical or operational glitches, even if swiftly reversed, can cascade into sudden market moves and potential losses. It also highlights the challenge of aligning high-speed, automated trading systems with supervisory structures that must keep pace with rapid innovation.
Conclusion
Bitcoin’s recent price action reflects a combination of macroeconomic uncertainty, shifting expectations around U.S. monetary policy, and lingering effects from leveraged trading. With the token stuck between $68,000 and $72,000 after a sharp drop to roughly $60,000 and a subsequent rebound, traders are waiting for clearer signals from upcoming U.S. jobs and inflation data, as well as from the looming change in Federal Reserve leadership following Kevin Warsh’s nomination.
At the same time, the accidental $44 billion Bitcoin allocation at Bithumb has highlighted vulnerabilities in exchange infrastructure and added urgency to calls for stronger regulation. Together, these developments show that both policy decisions in major economies and internal safeguards at trading platforms remain central to how the Bitcoin market evolves in the near term.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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