Bitcoin climbs back above $71,000 as tech selloff pauses
Analysis
Price Impact
MedBitcoin's rebound above $71,000 is primarily driven by short covering and a pause in the broader tech selloff, rather than robust fresh buying. spot demand remains soft and stablecoin balances on exchanges are drifting lower, suggesting a lack of strong conviction from new capital.
Trustworthiness
HighThe analysis is well-supported by market observations, including analyst commentary, data on short covering, soft spot demand, and declining stablecoin balances. it also incorporates macro factors like u.s. interest rates and dollar strength, lending credibility to the insights.
Price Direction
NeutralWhile btc saw a bounce, the underlying sentiment remains cautious. the move is attributed to short covering, not fundamental buying pressure. ongoing macroeconomic uncertainty, soft spot demand, and decreasing stablecoin balances suggest potential downside, with some firms warning of retests in the low-to-mid $60,000 range if selling resumes.
Time Effect
ShortThe current price rebound is likely a short-term reaction due to short covering and a temporary easing of broader market selloffs. the underlying issues of weak spot demand and macro uncertainty suggest that any sustained upward momentum might be limited without a new catalyst.
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Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bitcoin climbs back above $71,000 as tech selloff pauses Analysts say the move looks driven more by short covering than fresh buying, with spot demand soft and stablecoin balances on exchanges drifting lower. By Shaurya Malwa Feb 5, 2026, 8:52 a.m. Make us preferred on Google What to know : Bitcoin rebounded above $71,000 after briefly dropping below $70,000 amid a broader, but easing, selloff in global risk assets. Analysts say the move looks driven more by short covering than fresh buying, with spot demand soft and stablecoin balances on exchanges drifting lower. Ongoing uncertainty over U.S. interest rates, Federal Reserve leadership and a stronger dollar is weighing on sentiment, leaving some firms warning of potential retests of the low-to-mid $60,000 range. Bitcoin clawed its way back above $71,000 on Thursday after a sharp selloff earlier in the day dragged prices briefly below the $70,000 mark, mirroring tentative stabilization across global markets. The move came as a broader rout in technology stocks showed signs of fatigue. Futures tied to the Nasdaq 100 edged higher after two bruising sessions that erased the index’s gains for the year, while European stocks steadied and Asian markets trimmed losses. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . Bitcoin had fallen as much as 7% over the previous 24 hours as investors reduced risk across assets tied to growth and leverage. The slide coincided with renewed pressure in precious metals, where silver plunged as much as 17%, extending a brutal reversal after last month’s record rally. Gold also slipped, underscoring how quickly speculative trades across markets have been unwound. In crypto, the bounce above $71,000 appears more like short covering than a renewed rush of buyers. Trading volumes remain elevated, but demand in the spot market has thinned, according to analysts. Stablecoin balances on exchanges have also been drifting lower, suggesting fresh capital is staying on the sidelines rather than stepping in aggressively on dips. Macro uncertainty continues to weigh on sentiment. Investors are recalibrating expectations around US interest rates amid speculation over Federal Reserve leadership and the risk of a stronger dollar, which typically pressures assets like bitcoin that thrive on easy liquidity. Some firms remain cautious. Galaxy Digital has warned that, without a clear catalyst, bitcoin could still revisit lower levels if selling resumes. Others see the bulk of the drawdown as already behind the market, with estimates clustering around a potential bottom in the low-to-mid $60,000 range.