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Bitcoin Reclaims $70,000 After Flash Crash as ETF Flows and On‑Chain Signals Diverge

Institutional demand showed signs of returning with Feb. 6 net ETF inflows led by BlackRock’s IBIT.

Overview

  • Bitcoin rebounded above $70,000 within days of plunging to about $60,000, with sentiment gauges still registering extreme fear near single digits.
  • After multi‑week withdrawals, U.S. spot bitcoin ETFs posted roughly $330.7 million in net inflows on Feb. 6, led by IBIT, even as the week still ended with about $358.5 million in net outflows.
  • BlackRock’s IBIT saw record trading activity around the selloff, with reported volumes near $10–$10.7 billion as dealers and structured products rebalanced.
  • Derivatives stress persisted with earlier multi‑billion‑dollar liquidations and another $297 million in 24‑hour liquidations skewed toward shorts during the bounce, pointing to elevated volatility.
  • On‑chain and market data showed mixed signals, including broad accumulation across holder cohorts and a positive Coinbase premium, alongside low MVRV and a depressed taker buy ratio, while analysts split on whether the $60,000 area marked a durable bottom.