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Bitcoin holds above $70k after volatile week
Bitcoin remained above US$70,000 in Asia trading on February 9 after experiencing significant volatility last week, including a dip to nearly US$60,000.
The cryptocurrency was trading around US$70,700 at 9:30 a.m., close to its opening level, after falling to US$69,991 early in Singapore.
Last week, Bitcoin plunged to its lowest since October 2024 before rebounding above US$70,000.
Market analysts noted that while Bitcoin has stabilized, uncertainty persists, with US$60,000 seen as a key support level.
Some experts suggest that a break above US$75,000 could indicate a potential end to the current bear market, with resistance levels at US$73,000 to US$75,000, and possibly US$81,000 if momentum continues.
US Bitcoin ETFs saw inflows of US$221 million on February 6, as investors bought during the recent downturn.
Market sentiment remains cautious amid ongoing volatility.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
Recent ETF buyers are largely underwater, fueling uncertainty
- Many ETF buyers from the downturn still sit on losses. The average cost basis across U.S. Bitcoin ETFs is about $84,099 1.
- Bitcoin trading above $70,000 still leaves that group underwater. This helps explain cautious sentiment, though it alone does not prove “persistent selling pressure.”
- ETF flows can flip fast. About $561.8 million came in on February 2, then $272 million went out the next day 2.
- These quick turns imply some institutions pull money when prices stall, rather than buying dips over time 2.
Investors are treating Bitcoin as a high-risk tech play, not a safe haven
- Bitcoin’s drop toward $60,000 fits a risk-on trade, while gold often holds up during stress.
- Across seven S&P 500 drawdowns over 12% since bitcoin’s inception, gold returned +4.7% on average. Bitcoin fell about 35.3% 3.
- Campbell Harvey, duke university professor, calls bitcoin “hardly a safe-haven asset” and says it often tracks risk assets during market stress 4.
- Some capital appears to stay in crypto through rotation. Flows have moved into other digital assets such as Ethereum and Solana alongside bitcoin ETF outflows and inflows 2.
