Bitcoin Faces Uncertain Weekend After Brief Rally

According to CoinDesk, Bitcoin (BTC) experienced a brief rally early in the U.S. trading session on Friday, only to see the gains quickly dissipate. This development raises questions about whether investors are reducing their positions ahead of the weekend. Standard Chartered's Geoff Kendrick noted in his Friday report that Bitcoin's price has declined for five consecutive weekends, measured from 5 pm ET Friday to the same time on Sunday. This trend has been influenced by various factors, including the DeepSeek AI news and tariff threats from U.S. President Donald Trump. Kendrick highlighted that such weekend volatility is unusual, as 2024 typically saw muted price movements during weekends, with significant activity occurring on Mondays and Fridays. On Friday, Bitcoin briefly rallied by approximately 1.5% to $97,600 following the release of U.S. retail sales data for January, which fell short of economists' expectations. This data miss sparked optimism that the Federal Reserve might consider rate cuts in the first half of the year. However, Bitcoin's price soon returned to around $96,400, close to its pre-data release level. Investors are also mindful of the upcoming three-day weekend in the U.S., with Monday being Presidents' Day, adding another layer of uncertainty to the market dynamics.