Bitcoin Recovers After $1.1 Billion in Liquidations... As Retail Investors Sell Off, Binance Scoops Everything Up
Bitcoin Recovers After $1.1 Billion in Liquidations... As Retail Investors Sell Off, Binance Scoops Everything Up
Bitcoin (BTC) rebounded from a shock wave of $1.1 billion in forced liquidations, demonstrating strong institutional dip-buying demand.
According to crypto news outlet Cointelegraph on February 6 (local time), Bitcoin plunged to $59,000 the previous day, marking its lowest level in 15 months, but rebounded by double digits within a day to set its sights on $70,000. During the sharp sell-off, $1.1 billion worth of long positions were liquidated, exposing the market to extreme volatility. However, as prices fell below $60,000, institutions moved swiftly to accumulate, offsetting downward pressure.
Binance’s insurance fund, SAFU (Secure Asset Fund for Users), purchased 3,600 BTC worth $250 million around the $65,000 level. The move is part of Binance’s planned $1 billion Bitcoin conversion strategy. In addition, Bitwise data indicate that multiple crypto hedge funds treated the pullback as a buying opportunity. In the U.S. spot Bitcoin ETF market, analysts note that significant dip-buying flows entered amid record trading volumes.
Market analysts identify $58,000 as Bitcoin’s last line of support. This zone aligns with the 200-week moving average and historically dense trading volume, making it a critical bulwark against further downside. Trader Jelle wrote on X (formerly Twitter) that Bitcoin must hold the $58,000–$62,000 range to avoid a deeper correction, adding that large whale investors are deploying phased buying strategies in this area.
Although investor sentiment has been dampened by policy uncertainty under the Donald Trump administration and weakness in tech stocks, Bitcoin’s resilience remains solid, analysts say. Bloomberg analyst Eric Balchunas pointed to record-breaking trading volumes in BlackRock’s IBIT as evidence of ample liquidity in the market, noting confirmed institutional buying through spot Bitcoin ETFs. Bitwise Chief Investment Officer Matt Hougan also said the current fear-driven phase could present a favorable entry point for long-term investors.
The crypto market is watching closely whether this rebound proves to be a temporary dead-cat bounce or the start of a new uptrend. While retail investor sentiment indicators remain subdued, continued institutional inflows are reinforcing downside support. Bitcoin is once again testing market confidence as it attempts to break through price resistance in the first quarter of 2026.
*Disclaimer: This article is for investment reference only, and no responsibility is assumed for any losses incurred based on it. The content should be interpreted solely for informational purposes.*
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