The Bitcoin price surged past $71,000 over the weekend, continuing its recovery following one of the most significant sell-offs of the cycle that had briefly driven the price down to around $60,000 earlier this week. The recovery is unfolding as institutional investors seem to view sub-$70,000 bitcoin as a fresh buying opportunity, while retail traders continue to look for indications that the market has hit a bottom. In a recent interview, Hunter Horsley remarked that the current pullback in bitcoin is being perceived differently by large investors compared to long-time holders. “I think long-time holders are feeling unsure,” Horsley stated. “And I think the new investor set, institutions are sort of getting a new crack at the apple.”
Horsley noted that certain institutional buyers are now encountering price levels they thought they had permanently overlooked, as bitcoin gets “swept up” in a wider macro-driven selloff affecting liquid risk assets. As institutions continue to make their presence felt, retail participants are closely monitoring the market for signs that the sell-off has completely run its course. In a weekend report, sentiment platform Santiment highlighted that retail traders are “meta-analyzing” the downturn, seeking evidence that others are exiting before making their return to the market — a behavior frequently observed near market lows. “Retail traders are attempting to meta-analyze the market, searching for indicators of others exiting to time their own entries,” Santiment stated.
Google Trends data showcases the surge in interest. Global interest in “Bitcoin” surged to a score of 100 for the week beginning Feb. 1 — marking the peak level in the last year — as the price of bitcoin fluctuated dramatically from over $81,000 to $60,000 before making a recovery. Interest in the term “crypto capitulation” saw a significant spike, increasing from 11 to 58 in the week that concluded on Feb. 8. In a recent statement, Jeff Park indicated that the next significant catalyst for a bitcoin bull market might not stem from Federal Reserve rate cuts, but rather from bitcoin’s capacity to appreciate even amid a tightening economic landscape. Park outlined a scenario in which the bitcoin price ascends in tandem with rising interest rates, labeling it the asset’s “holy grail,” and questioning conventional beliefs about liquidity and the global monetary framework.
Last week, crypto exchange Bithumb reported an accidental distribution of over $40 billion in Bitcoin during a promotional rewards event. A payout error resulted in some users receiving thousands of BTC instead of a modest cash reward. The exchange swiftly imposed restrictions on trading and withdrawals, successfully recovering 99.7% of the surplus Bitcoin and emphasizing that the incident was not the result of hacking or a security breach. A small amount — approximately 125 BTC valued at around $9 million — is still unrecovered, and Bithumb has stated it will address the losses using corporate funds. At the time of publication, Bitcoin price was trading above $71,400, showing signs of stabilization following several days of intense volatility that shook both the crypto and wider financial markets.