On February 6, news reports indicate that Bitcoin rebounded after reaching a cyclical low, briefly approaching the key psychological threshold of $60,000, but market participants remain highly cautious about the subsequent trend. On Thursday evening, Bitcoin briefly fell below $61,000 and oscillated above $60,000. By early Friday morning Eastern Time, Bitcoin recovered to approximately $66,015.
Since reaching a record high of $126,000 in October 2025, Bitcoin has entered a deep correction cycle. Multiple macroeconomic and market structural factors have combined to put pressure on risk assets overall. US tech stocks continued to weaken, intensifying the trend of capital withdrawal from high-volatility assets, and Bitcoin’s correlation with tech stocks has amplified this impact.
Forced liquidations in the derivatives market further accelerated the downward momentum. Data shows that passive liquidations in a single day exceeded $2 billion at one point, and nearly $800 million the next day. A large number of leveraged positions were triggered, creating a chain reaction that temporarily intensified the selling pace.
The flow of institutional funds has also become a focus. On-chain analysis firms point out that the US Bitcoin ETF, which purchased about 46,000 BTC last year, may turn into a net seller by 2026. Markus Thielen, Head of Research at 10X Research, stated that many institutions entered via ETFs at an average cost close to $90,000, and are currently in significant loss, leading to concentrated sell-offs during US stock trading hours.
From a technical perspective, Bitcoin has fallen more than 40% from its all-time high. Ethereum, Ripple, and Solana have experienced even more significant declines, each dropping over 60%. Some analysts believe that after breaking below $70,000, the market may not have completed its bottoming process. 10X Research predicts that after a brief consolidation, Bitcoin could still retest the $50,000 region.
Although a short-term rebound has alleviated panic sentiment, Bitcoin remains in a high-volatility zone until macro uncertainties and capital outflows are clearly eased. The market may require more time to digest this deep correction.
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