Crypto prices today saw modest gains after a violent weekend sell-off cooled, offering the first signs of stabilization following days of forced deleveraging.
Summary
- Bitcoin and large-cap altcoins staged a relief rebound after forced selling slowed.
- Liquidations dropped sharply, easing pressure across derivatives markets.
- Analysts say downside risks remain despite early signs of stabilization.
Bitcoin was trading at $78,465 at press time, up 5.2% over the past 24 hours. The broader crypto market also gained ground, with total market capitalization rising 2.8% to $2.7 trillion.
Several large-cap tokens followed BTC higher. BNB climbed 5.3% to $769, Cardano rose 7.2% to $0.2975, and Avalanche gained 5.3% to $10.09. The market is still in extreme fear despite the rebound, as evidenced by the Crypto Fear & Greed Index, which rose three points to 17.
Trading activity showed early signs of recovery. With total crypto open interest rising 4% to $110 billion, traders appear to be gradually re-entering the market following last week’s leverage flush.
Leverage unwind eases after weekend capitulation
The rebound comes after one of the most aggressive liquidation events since late 2025. Thin weekend liquidity amplified selling pressure as over-leveraged long positions were forced out across the market.
Between Jan. 31 and Feb. 2, total liquidations repeatedly topped $2 billion in single sessions, with one peak reaching roughly $2.5 billion on Feb. 1. Long positions accounted for the vast majority of losses, wiping out thousands of traders and triggering a self-reinforcing cycle of margin calls and forced selling.
That pressure has eased. CoinGlass data shows 24-hour liquidations fell 44% to about $401 million, a sharp drop from weekend extremes. With much of the excess leverage cleared, selling linked to liquidations has slowed, allowing dip buyers and longer-term investors to step in without immediate counter-pressure.
Additionally, the larger background has somewhat stabilized. Risk assets had sold off alongside equities and precious metals amid macro uncertainty, geopolitical tensions, and policy jitters. As those pressures cooled slightly, crypto followed suit, catching a relief bounce after reaching deeply oversold levels.
Analysts warn downside risks are not gone
Even though prices have recovered, experts are still hesitant to declare a long-term bottom. Bitcoin is still down roughly 12% on the week and about 40% from its October peak near $126,000, keeping the market in a corrective phase.
Views on what comes next remain split, with some watching for consolidation and others warning of another leg lower if macro stress returns. In a commentary shared with crypto.news, Ray Youssef, CEO of NoOnes, said bearish sentiment is likely to dominate the first half of the year as capital continues rotating into traditional safe havens.
“The latest crypto market sell-off occurred amidst capital outflows into precious metals, whose prices are rising amid geopolitical and macroeconomic uncertainty,” Youssef said, adding that political risks and policy instability are weighing heavily on investor confidence.
Youssef flagged the $73,000 area as a critical support zone for Bitcoin, warning that sustained geopolitical pressure or renewed liquidation waves could drag prices lower if buyers fail to defend it. He also pointed to Japan’s economic risks and global policy uncertainty as factors that could spill into crypto markets.
For now, traders appear focused on whether this rebound can extend beyond a short-term relief move. Much will depend on whether spot demand continues to absorb supply, and whether leverage stays in check after one of the most punishing shakeouts of the cycle so far.
