LONDON, Feb 4, 2026, 19:26 GMT
- After dropping to its lowest point since November 2024, Bitcoin climbed back above $76,000.
- Ether held steady around $2,255, recovering slightly after dropping to prices not seen since May 2025.
- Derivatives markets signaled ongoing tension, as traders continued paying premiums for downside protection.
Bitcoin and ether found some footing Wednesday after a sharp decline on Tuesday sent both cryptocurrencies to new lows. Bitcoin bounced back to around $76,100 from a low near $72,870, while ether hovered close to $2,255, according to CoinDesk. The recovery followed a broader market rally sparked by the U.S. House of Representatives passing a government funding bill to end the partial shutdown. 1
The calm stands out, given the plumbing still looks tight. Total open interest—the value of outstanding futures bets—dropped to around $105.9 billion, hitting its lowest point since last April. Meanwhile, roughly $679 million worth of crypto futures positions were liquidated in a 24-hour span, according to CoinDesk data.
The latest price swing comes after several days of forced selling, as traders reduced leverage and pulled back from risk across markets. Bitcoin investors liquidated $2.56 billion in recent days, according to data from CoinGlass. Kaiko analyst Adam McCarthy noted that investors are “taking a step back” to reassess their risk frameworks. 2
Outside of bitcoin, the scene remained mixed. Solana’s SOL and XRP lingered close to their lowest points since 2024, erasing years of gains. Privacy coin Monero saw a rebound, according to market data cited by CoinDesk. Bitcoin’s “dominance”—its slice of total crypto market value—climbed back above 59% as traders gravitated toward the biggest token.
Options traders showed little sign of calm. Bitcoin’s 30-day implied volatility, a measure based on options prices that signals expected price swings, climbed to an annualized 53%—its highest level since Dec. 1, according to CoinDesk. Meanwhile, Deribit-listed options kept favoring puts, contracts that pay off if prices drop.
Technical analysts cautioned the recent bounce might just be a brief pause, not a full reversal. A Cointelegraph piece shared on TradingView highlighted bearish signals for bitcoin, including a head-and-shoulders pattern — a key reversal indicator traders monitor for trend shifts. The report noted a “measured” downside target near $52,650 if selling pressure continues. 3
On-chain data — drawn from blockchain transactions — indicated miner distress, the report noted. It highlighted CryptoQuant’s “Puell Multiple,” which measures miners’ daily revenue against the annual average, lingering in a “discount zone” since November. At the same time, the network hash rate has fallen 12% from its peak in November 2025.
Exchange flows sparked fresh concerns. The report noted daily bitcoin inflows to Binance reached 15,709 on Tuesday, marking the biggest surge since Nov. 21, 2025. CryptoQuant analyst Darkfost pointed to “real selling pressure” following tens of thousands of bitcoin moving onto the exchange across two days.
A separate note from Bitop reported bitcoin bouncing back to about $78,000 following a drop to $74,604, though it cautioned that slipping below $70,000 might spark a harsh “crypto winter.” 4
Some analysts linked Wednesday’s firmer tone more to politics and liquidity than any real change in crypto fundamentals. Akshat Siddhant, lead quant analyst at Mudrex, suggested a shutdown deal might trigger a “relief rally.” Meanwhile, Giottus CEO Vikram Subburaj described bitcoin as “consolidating uneasily,” with macro signals shaping risk appetite. 5
But the bounce sits on shaky ground. Should bitcoin fall below the low-$70,000s again, traders warn that leverage-driven liquidations could surge fast, pushing bearish chart targets into the spotlight—particularly during low-liquidity stretches, such as weekends.
Bitcoin is still far from its October peak near $126,000, while ether hasn’t come close to matching its highs either. The key question now: Will $73,000 act as a solid support? Traders are also eyeing whether demand for protection starts to ease.
