🧔♂️ A friendly human may check it before it goes live. More news here
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.
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.