Bitcoin stabilized near $70,000 after a turbulent week marked by sharp swings between $60,000 and $80,000, signaling calmer trading as investors assessed macro and regulatory developments. The recovery accelerated over the weekend, with Bitcoin climbing toward $70,000 and reaching $71,000 by Monday morning Asia time, according to market data.
At the same time, gains spread across digital assets. Ethereum moved back above $2,000, while XRP recorded a 25% single-day increase during the rebound.
Blockhead reported that improving risk appetite across broader markets supported the crypto rebound during the weekend recovery. The progress in reported U.S.-India trade deal discussions brought increased expectations for tariff relief. As a result, investors eased concerns over escalating trade tensions.
The on-chain data showed that whales accumulated large amounts of cryptocurrency during the period when prices reached their lowest point. Large holders added exposure during the selloff, which coincided with Bitcoin's weekend bounce.
The crypto market bill has reached its most important stage during this week. February 10 will serve as a crucial turning point because regulations will become clearer. Blockchain data shows that stress levels still exist in the system; more than 9.3 million BTC remain underwater, which marks the highest level since January 2023.
The cost-basis data demonstrates different trends between two groups. Short-term holder cost basis reaches approximately $94,000 while the actual market average exists at about $80,100, which indicates ongoing selling activities by recent purchasers.
Analysts cite strong U.S. economic growth and improving macro conditions as supportive for Bitcoin at current levels near $70,000. The Federal Reserve resumed Treasury bill purchases in December to maintain liquidity and manage interest rates, according to David Brickell and Chris Mills of the London Crypto Club.
They stated that robust U.S. growth, easing inflation, and stronger liquidity conditions support equities and crypto in the coming months. Bitcoin jumped 12% over the weekend. During that move, about $245 million in short positions was liquidated, which added momentum to the rally.
Despite the rebound, investors have continued selling spot Bitcoin exchange-traded funds. Net outflows have reached $6.5 billion since November, based on data from DefiLlama.
The S&P 500 was rising. Equity markets advanced despite concerns over artificial intelligence valuations, tech weakness, and political uncertainty. Brickell and Mills observed that both equities and gold maintained their strength because of the way investors positioned themselves and the flow of capital into the markets. Gold prices received support from consistent demand from central banks.
Crypto prices dipped earlier after President Donald Trump nominated Kevin Warsh as Federal Reserve chair.
Even so, analysts expect financial expansion to continue. They said funding stress often forces balance sheet growth, as seen with renewed Treasury bill purchases. They added that efforts to shrink the Fed balance sheet may shift liquidity provision to private balance sheets instead—so will liquidity expansion keep lifting Bitcoin prices?
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Bitcoin stabilized near $70,000 after sharp volatility as liquidity support, whale accumulation, and macro signals drove a rebound. ETF outflows and underwater supply still signal pressure. Investors now watch regulatory developments and liquidity trends, which may shape the next phase of Bitcoin price recovery.