After plummeting to its worst day since the FTX crash of 2022, Bitcoin staged a dramatic comeback Friday, surging more than 15% from its intraday lows below $60,000. The cryptocurrency rallied to $70,661, providing much-needed relief to battered crypto investors who’ve watched their gains evaporate since October’s peak.
Thursday’s nosedive was brutal. No sugar-coating it. Bitcoin dropped to its lowest point since late 2024, with the plunge erasing all gains made since President Trump’s election. Talk about a rollercoaster.
The crash wasn’t a crypto-specific meltdown. Global financial markets deteriorated on February 5, with major stock indices sliding as investors fled riskier assets. Weak earnings reports and tech stock declines didn’t help. Classic flight to safety.
The recovery brought sunshine to crypto-adjacent stocks too. MicroStrategy shares jumped 21%, while Coinbase, Circle, and Robinhood all surged 10-15%. Even tech giants Nvidia and Microsoft bounced back after Thursday’s dip. The impressive price recovery reflected an 11,000 dollar climb from the $60,000 low in just 24 hours. The iShares Bitcoin Trust hit a record $10 billion in daily volume. Not too shabby.
Bitcoin’s retreat has been significant though—somewhere around 52% down from its all-time high above $126,000 in October 2025. Volatility like this hasn’t been seen since, well, FTX imploded.
Institutional factors played a big role. Hedge fund exposure to Bitcoin ETFs fell by a third. ETF outflows continued at a moderate pace. That arbitrage opportunity everyone was talking about? Gone. Yields now pay less than 5%. Structural demand unwound as billions in positions liquidated.
Looking ahead, experts expect Bitcoin to range between $60,000-$75,000 without new catalysts. Bitcoin’s market dominance of approximately 62.7% continues to provide relative stability compared to more volatile altcoins. The crypto seems to have found buying interest around $70,000.
But make no mistake—the four-month damage from October highs remains significant. Spot Bitcoin ETFs now hold approximately 6% of all Bitcoin, creating a mechanical selling pressure when outflows occur. ETF flows and stablecoin trends will likely determine where we go from here. And Bitcoin’s high correlation with tech stocks? That’s not changing anytime soon.
