Bitcoin Recovers $70,000 Levels After Multi-Billion Dollar Crash – Crypto News – Crypto News
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Bitcoin Recovers $70,000 Levels After Multi-Billion Dollar Crash Bitcoin Recovers $70,000 Levels After Multi-Billion Dollar Crash

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Bitcoin Recovers $70,000 Levels After Multi-Billion Dollar Crash – Crypto News

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BTC is trading sideways around $68K-$71K since Thursday’s flash crash, but losses across major tokens continue.

Crypto markets saw a modest bounce after last week’s broad sell-off, though the sector remains in the red. Total market cap is down 2.2% today and most large-cap crypto assets are seeing losses on the daily and weekly timeframes.

As of Monday morning, Bitcoin (BTC) was still down about 3% on the day, trading near $69,280, after briefly dipping as low as $60,000 on Thursday.

BTC 24-hour price chart. Source: CoinGecko

Ethereum (ETH) is also down today, with 3.8% losses over the past 24 hours to trade just above $2,000, extending its seven-day losses to roughly 12%.

All remaining top-10 tokens by market capitalization were in the red as well, with Solana (SOL) leading losses, down about 4% on the day.

Echo of May 2022

Glassnode analysts said in a post on X today, Feb. 9, that market positioning for Bitcoin remains defensive across spot and derivatives markets, as well as per on-chain metrics, with any recovery dependent on a meaningful return of spot demand.

They added that while fundamental network activity is strengthening, profit-and-loss conditions continue to weaken, demonstrating only soft demand and limited profitability.

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Bitcoin relative unrealized losses vs. price. Source: glassnode

At $70,000 levels, unrealized losses account for about 16% of Bitcoin’s market cap, echoing the situation in early May 2022, glassnode noted, referring to heavy deleveraging that preceded the Terra-driven drawdown at the time.

According to the Crypto Fear & Greed Index, investor sentiment remains in the “extreme fear” zone this morning, where it has been for most of the last month.

Big Movers and Liquidations

Looking at the top-100 assets by market cap, Rain (RAIN) and the Trump family’s World Liberty Financial (WLFI) outperformed the market up 11% and 6% respectively.

On the downside, MemeCore (M), Bittensor (TAO), and Ondo (ONDO) were the three weakest performers, all down about 6% on the day.

CoinGlass data showed continued forced deleveraging, with roughly $344 million in leveraged crypto positions liquidated over the past 24 hours, a far cry from the multi-billion liquidations that shook the market late last week amid quickly falling prices.

By asset, BTC led liquidations with approximately $182 million, followed by ETH at around $71 million.

ETFs and Macro Conditions

For the week ending on Feb. 6, spot Bitcoin exchange-traded funds recorded $318 million in net outflows, and ended the week with daily net inflows above $371 million. Cumulative net inflows stand at $54.7 billion, according to data from SoSoValue.

Spot Ethereum ETFs posted $166 million in weekly net outflows during the same timeframe, with net outflows every day last week but Feb. 3, while cumulative net inflows are currently around $11.8 billion.

In macro markets, U.S. Treasury yields moved higher to start the week as investors braced for a wave of delayed U.S. economic data. The 10-year Treasury yield rose to 4.236%, while the 30-year climbed to 4.889%, CNBC reports.

Markets are focused on the January nonfarm payrolls report, now scheduled for release this Wednesday, Feb. 11, which is expected to show job growth of 60,000, with the unemployment rate holding steady at 4.4%.

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