After experiencing significant price swings at the end of last week, Bitcoin (BTC) hovered around the $70,000 mark today, oscillating slightly above and below this level.
The market has been marked by volatility exceeding 13% within a single day, which has shaken investor confidence and fostered a cautious sentiment among traders.
On Thursday, Bitcoin dipped to $60,033—the lowest point since October 2024—but managed a robust recovery on Friday by climbing back over $70,000. Despite this rebound, market participants remain wary.
Chris Beauchamp, the chief market analyst at IG, pointed out that although cryptocurrency prices have bounced back from last week’s lows, investors are hesitant to “buy the dip.” He emphasized that while upward momentum is needed for sustained growth in crypto markets, such momentum remains elusive despite recent gains.
The volatility of Bitcoin surged dramatically during last week’s sell-off. The Bitcoin Volmex Implied Volatility Index shot past 97%, marking its most significant intraday increase since the collapse of FTX in 2022. This signals persistent fragility within the market environment.
Although high volatility is typical for cryptocurrencies, Bitcoin’s drop from its peak near $126,000 in October is particularly notable. This decline happened even with supportive policies from a crypto-friendly White House administration and growing institutional interest. Moreover, Bitcoin’s inability to act as a reliable “digital gold” safe haven amid escalating geopolitical tensions calls into question this widely held belief.
Nevertheless, there are glimmers of optimism remaining. On February 6th, US-based Bitcoin spot ETFs recorded net inflows totaling $221 million—indicating some investors see recent sharp declines as buying opportunities rather than reasons for panic selling.
Jeff Anderson, Head of STS Digital Asia, suggests liquidity will likely diminish short-term while jittery markets could produce larger price swings. “
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