No Ordinary Correction: Bitcoin Nears $70,000
Bitcoin remained under pressure during European trading on Thursday (February 5th), with the psychological $70,000 level once again in the spotlight. In the latest trading session, BTC was hovering around $71,593, down 6.1% today, having touched an intraday low of $70,098 before rebounding slightly.
Selling pressure was also felt on Ethereum. ETH was trading around $2,136, down 5.9%, after briefly dropping to near the $2,074 area. The market views the $2,000 area as the next key line—a breach could lead to further risk-off sentiment.
According to a Reuters report, this sell-off intensified after the market assessed the impact of Kevin Warsh's nomination as Fed Chair—particularly due to policy expectations that could encourage tighter liquidity through a smaller Fed balance sheet. For speculative assets like crypto, the issue of "strained liquidity" is usually immediately interpreted negatively.
On the other hand, the geopolitical "risk premium" factor is also starting to fluctuate: when tensions ease (for example, due to diplomacy), safe-haven demand and speculative positioning often follow suit—and crypto can be impacted through outflows of risk-asset funds.
One signal the market pays close attention to is institutional fund flows. Reuters noted that US spot Bitcoin ETFs experienced an outflow of over $3 billion throughout January, following outflows of around $2 billion (December) and $7 billion (November)—a sign that traditional investor interest is cooling amid rising volatility.
The bottom line: as long as BTC remains "stuck" in the $70,000 area, the market will be sensitive to two things—policy/liquidity headlines (Fed) and ETF fund flows. If $70,000 is completely breached, technical pressure could increase; but if it holds and outflows subside, the opportunity for a relief bounce remains (although volatility remains high).
Source: Newsmaker.id
