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Bitcoin jumps 4.2% to above $78,500
Bitcoin rose above US$78,500 on February 3, 2026, climbing 4.2% in 24 hours to around US$78,662 after falling to around US$75,000 earlier in the day, according to The Block.
Ethereum increased by nearly 6% to US$2,322, with other major cryptocurrencies also posting gains, though prices remain below recent highs.
Analysts cited the rebound to technical factors such as short covering and oversold conditions, rather than a sign of a sustained recovery.
They noted that macroeconomic uncertainties and monetary policy expectations continue to influence market sentiment.
Some experts highlighted that the recent sell-off was driven by shifts in US interest rate expectations and Federal Reserve signals.
While the rebound indicates a temporary stabilization, analysts caution that without new funding or positive macroeconomic developments, the move may not signal a long-term trend.
Market participants are awaiting upcoming US labor data, which could impact future price movements.
🔗 Source: The Block
🧠 Food for thought
Implications, context, and why it matters.
Bitcoin’s rebound is fragile due to underwater ETF investors
- Bitcoin’s bounce is capped by many institutional buyers still sitting on losses.
- US spot-Bitcoin exchange-traded fund (ETF) investors paid about $84,100 per coin on average, which can turn that level into a ceiling when rallies give them a chance to sell at break-even 1.
- Outflows add pressure, with Bitcoin ETFs logging $6.33 billion in withdrawals over seven days (a week) 2.
- The pullback followed a broader risk-off move after US President Donald Trump nominated Kevin Warsh as the next Federal Reserve Chair. His policy stance is disputed, and he has recently argued for interest rate cuts 3.
The Fed chair nomination had spillover effects across risk assets
- Volatility reached beyond crypto, with the nomination news lining up with sharp swings in gold and silver prices 4.
- Uncertainty around monetary policy drove the reaction. Warsh has a hawkish history, yet he has lately pushed for rate cuts while citing possible productivity gains from AI 4.
- Analysts say the pick sought to steady confidence in policy direction and the Fed’s balance sheet. Gold and silver sold off, while the US dollar strengthened modestly in the immediate response 5.
- Bitcoin moved in step with other high-risk assets, reacting to familiar policy cues instead of trading as a fully independent asset 6.
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