 ▲ Bitcoin (BTC) / ChatGPT-generated image |
After plunging toward the $60,000 level amid extreme volatility, Bitcoin has reclaimed $70,000, fueling a rapidly spreading market assessment that a bottom has been formed.
Bitcoin (BTC) tumbled to around $60,000 during intraday trading before strong buying interest emerged, allowing it to regain the $70,000 level within a day. With a market capitalization of roughly $1.3 trillion, Bitcoin rebounded more than 10% on the day. Ethereum (ETH) climbed over 11% to above $2,000, while XRP (Ripple) surged about 22% to trade around $1.48.
Market experts view this rebound not as a mere technical bounce but as a signal of a bottom forming after a substantial correction. David Duong, head of global investment research at Coinbase, noted that while it is difficult to be definitive, conditions conducive to a market bottom in cryptocurrencies appear to be aligning simultaneously. He added that the Bitcoin correction over the past three months has been unusually severe even by historical standards.
A combination of factors is believed to have driven the sharp sell-off, including the unwinding of excessive leverage, forced selling by mining companies, fading expectations around artificial intelligence themes, rising concerns over quantum computing risks, and Bitcoin’s characteristic four-year cycle. Rather than a single negative catalyst, compounded pressures pushed prices sharply lower, triggering cascading liquidations of high-leverage positions and amplifying volatility.
Selling pressure was not limited to Bitcoin. During the same period, gold, silver, and technology stocks also underwent corrections. Silver, which had surged from $74 in January to $118, fell about 40% over the past week, while gold, which had reached a record high of $5,500, corrected by roughly 13%. Nevertheless, these assets have also rebounded recently, supporting a broader recovery across risk assets. The Nasdaq index, led by technology stocks, closed up 2% on the day.
Within the Bitcoin market, large-scale liquidations are cited as a key basis for the bottoming thesis. Jean-David Peiquignot, chief business officer of crypto derivatives exchange Deribit, described the recent price action as not only painful but historically unprecedented, noting that Bitcoin is approaching its first-ever streak of three consecutive monthly declines. He pointed out that as Bitcoin plunged from around $83,000 last week, approximately $2.65 billion in futures positions were liquidated in a single day, suggesting a significant portion of selling pressure may already have been exhausted.
However, experts caution that additional volatility driven by macroeconomic variables cannot be ruled out. Peiquignot emphasized that while mass liquidations can signal a bottom, unexpected macro catalysts could deliver fresh shocks. It was also noted that Bitcoin has remained in an exceptionally volatile phase since October 10 last year, when more than $19 billion in positions—the largest liquidation event in cryptocurrency history—were wiped out.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for losses resulting from investment decisions based on its contents. The information provided should be interpreted solely for informational purposes.*