 ▲ Bitcoin (BTC), Ethereum (ETH), and XRP / ChatGPT-generated image © |
After sweeping large-scale liquidations, Bitcoin, Ethereum, and XRP staged a simultaneous rebound, but derivatives markets and ETF fund flows continue to weigh on a sustained recovery.
According to investment media outlet FXStreet on February 6 (local time), Bitcoin (BTC) tested the $60,000 level intraday before attempting to rebound above $65,000. At the same time, Ethereum (ETH) traded around $1,900 but failed to break through the $2,000 resistance, while XRP surged more than 10% in a single day, jumping to as high as $1.35.
This rebound largely reflects a technical pullback following massive liquidations. Data from Coinglass show that roughly $2.6 billion in positions were liquidated across the crypto market over the past 24 hours, with long position losses accounting for the majority at $2.13 billion. Despite the sharp volatility, the simultaneous rebound of all three assets has been seen as providing short-term relief.
However, derivatives markets are showing clear signs of retail investor withdrawal. Bitcoin open interest fell to around $47 billion, its lowest level since mid-March, reflecting the unwinding of excessive leverage and a reluctance to take on new risk exposure. XRP also saw futures open interest drop from $2.57 billion to $2.4 billion in just one day, sinking to its lowest level in a year.
Spot ETF flows were mixed by asset. Ethereum spot ETFs recorded about $81 million in net outflows in a single day, extending net outflows for a second consecutive day, while cumulative net inflows declined to $11.83 billion. In contrast, XRP spot ETFs posted a modest inflow of $1.28 million, marking a third straight trading day of net inflows and lifting cumulative inflows to $1.21 billion.
Technical indicators point to “bearish dominance amid rebound attempts.” Bitcoin’s daily relative strength index rebounded from 23, signaling easing oversold conditions, but the moving average convergence divergence remains in bearish territory. Ethereum and XRP also saw their RSI climb out of oversold levels, but analysts widely agree that reclaiming key resistance levels and confirming volume are necessary to validate a trend reversal.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses incurred based on it. The content should be interpreted solely for informational purposes.*