The first week of February was a brutal bloodbath, exposing investors to massive losses just like Bitcoin [BTC] fell below $60,000 for the first time since 2024.
Unsurprisingly, the consensus soured market sentiment into ‘extreme fear’ index showing that all analysts have turned bearish this week. Contrarian sentiment is starting to emerge after the shaky yet relieving bounce around the $60K level.
Source: Unbias
Will $60,000 remain stable?
From a technical chart perspective, the price zone above $60,000, which aligns with the past cycle peak, could soften the correction.
A similar view was echoed by Jurrien Timmer, director of Global Macro at asset manager Fidelity. Carpenter invoiced the extended sharp decline due to BTC’s pricing in Kevin Warsh’s confirmation as the next Fed chairman.
“The markets spoke loudly last week when the next Fed chairman was announced. For Bitcoin, however, I continue to see $65,000 as an attractive entry point.”
Source: Trouw
However, gold’s outperformance may keep prices subdued. Timmer predicted that gold could maintain its lead in the market until BTC ETF inflows resume.
The ETF flow factor
According to the chart shared by Timmer, BTC ETF inflows peaked in October but then contracted.
In contrast, gold and silver ETF flows rose as investors sought refuge in metals and safe havens amid heightened macro uncertainty ahead of a new Fed presidency in May.
Source: Trouw
Yet analysts at asset manager Bitwise were still firmly bearish, warning that off-chain signals, particularly BTC ETFs, suggested the decline was far from over.
The analysts, led by Andre Dragosch, said that the market crash hasn’t caused massive ETF outflows, but resilience could still be an issue.
“Historically, sustained ETF outflows have tended to coincide with capitulation events, implying that a decisive shift in ETF flows could still serve as a crescendo moment for broader market capitulation.”
A recent AMBCrypto report found that BTC holdings by ETFs fell just 6.6% despite the +50% price crash since the end of 2025, underscoring the resilience cited by Bitwise analysts.
But will the market test this resilience?
The fear in the market decreased, but was not eliminated
At the time of writing, the insights in Options also painted a similarly cautious outlook. Particularly the 25-Delta Skew climbed slightly after reaching a low of -28 in the volatility index, but remained negative.
This meant that negative market sentiment subsided after the rebound to $60,000, but caution remained. In other words: Options players still bought more puts (bearish bets for downside protection) than calls (bullish bets).
Source: Amberdata
Final thoughts
- A Fidelity analyst viewed BTC’s sub-$60,000 levels as a great buying opportunity, citing past market correction patterns.
- However, the market remained cautious despite retesting $60,000, and continued ETF outflows could push BTC lower.