Bitcoin rebounded from the $60,000 level after collapsing 50% from its October peak

At the trading session in Asia, the bitcoin rate recovered after nearly falling below the psychologically significant mark of $60,000. But investors should not hope for the rally to resume soon - the market is too scared by the bitter experience, experts warn.

Bitcoin fell to $60,074 on the morning of February 6, but later rebounded above $66,000, Coinmarketcap data shows. Altcoins replicated the volatility of the largest cryptocurrency, with Solana falling 14% but recovering its losses in a matter of hours. Despite the corrective growth, traders say that the market has no clear direction - it is just "chattering" due to forced buying and selling, Coindesk reports.

The overall sentiment in Asia is negative and characterized by "sharp sell-offs amid low liquidity," Bloomberg writes, citing Ericsenz Capital Investment Director Damien Lo. The rebound from $60,000 indicates there is "strong support at that level," but traders should not "expect a quick rally" as sentiment remains cautious, he warned.

Traders are now focused on whether bitcoin can hold the $60,000 level, said BTC Markets analyst Rachel Lucas. She said there are now "very few" willing to play against a collapse caused by an uncontrollable cascade of forced closures of speculative positions. Lucas noted that the psychology of investors has changed - after the falling rate has repeatedly broken through support levels, market participants have become less trusting of technical signals.

"Bitcoin's pullback to $60,000 is not the death of crypto, but a 'bill to pay' for cryptocurrencies and funds that treated bitcoin as a one-way asset with no real risk control," Reuters quoted Joshua Chu, co-chairman of Hong Kong-based Web3, as saying. - Those who bet too much, borrowed too much or thought prices were only going up are now learning from bitter experience what real market volatility and risk management look like.

On February 5, bitcoin collapsed by more than 13%. The fall was the largest since November 2022, when Sam Bankman-Fried's FTX exchange collapsed. As a result, the main cryptocurrency has lost more than half of its value compared to the historic high recorded on October 6, 2025 at a level above $126,000, states Bloomberg.

Corporate bitcoin holders are also feeling the pressure, with Strategy (formerly MicroStrategy), the largest of them, recording a $12.4 billion loss in its last quarter earnings report released on February 5, due to the revaluation of its assets. According to Deutsche Bank, the outflow of funds from U.S. spot bitcoin-ETFs exceeded $3 billion in January 2026, following an outflow of $11 billion in November-December.

This article was AI-translated and verified by a human editor