Haciyev Reşit 
The leading cryptocurrency Bitcoin staged a partial recovery today following yesterday’s sharp sell-off, climbing back above the $70,000 level. This intraday movement indicates that short-term buying pressure has returned and demand from the lows is increasing. However, despite the recent rally, high volatility in the market continues, signaling that investors still need to exercise caution. Macroeconomic uncertainties and fluctuations in global markets raise questions about the sustainability of Bitcoin’s recovery.
Bitcoin Retests $70,000
After strong rebound buying just above $60,000, Bitcoin gained attention on Friday with a notable surge. BTC rose roughly 10% intraday, reaching $70,165. This recovery heading into the end of the week shows that buyers are re-entering the market and demand from lower levels is strengthening. Still, the sharp sell-off from yesterday highlights persistent fragility in the market. Bitcoin briefly dropped below $61,000, nearly touching $60,000, before signaling a recovery toward $66,000 during the morning hours. These fluctuating price movements indicate ongoing high volatility and cautious positioning among investors.
Bitcoin’s recent downtrend began after reaching its all-time high above $126,000 in October. Following that peak, the market experienced a sharp correction, and a bearish trend emerged. Multiple factors contributed to the selling pressure: ongoing declines in U.S. tech stocks—which are highly correlated with risky assets like Bitcoin—and increased volatility in traditional safe-haven assets such as gold and silver, which reduced investors’ risk appetite.
Liquidation-Driven Selling
One of the most critical factors deepening the decline was forced liquidations. When prices fell below certain support levels, highly leveraged positions were automatically closed, triggering a chain reaction of selling pressure. During periods of increased volatility, these liquidations accelerated price drops.
According to Coinglass data, over $2 billion in long and short positions were liquidated yesterday, with approximately $800 million liquidated today. In the past 24 hours, total liquidations reached $1.99 billion, with $1.44 billion from long positions and $550 million from shorts. This highlights that traders holding long positions were particularly affected by the sharp swings.
ETF and Institutional Activity
On-chain data and ETF flows show that institutional investors also reduced positions amid recent market fluctuations. Capital movements in spot ETFs suggest that large funds have adopted a more cautious short-term strategy. Yesterday, U.S.-based spot Bitcoin ETFs saw $330.7 million in net inflows. This strong capital injection indicates that institutional interest in Bitcoin remains despite volatile market conditions, with institutions beginning to reposition themselves.
Experts note that this reflects temporary risk-averse behavior rather than a loss of long-term confidence, as investors rebalance portfolios more conservatively during periods of high volatility.
Assessment
While Bitcoin’s rise back above $70,000 is a positive short-term signal, ongoing high volatility, forced liquidations, and institutional selling pressure highlight persistent market uncertainty. In the coming period, Bitcoin’s price direction will continue to depend on global macroeconomic developments, as well as ETF flows and on-chain indicators.
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