Bitcoin (BTC) has staged a modest rebound after suffering a sharp sell‑off over recent days, but market analysts warn that the underlying pressures driving the decline remain firmly in place. The world’s largest cryptocurrency plummeted momentarily to around $60,000 on Thursday, its lowest level in around 17 months, before rising modestly to current trade values of $70,667 as of Friday afternoon. Crypto Winter Fears Grow In comments shared with Fortune, Jefferies analyst Andrew Moss, the downturn is being fueled largely by selling from major holders. In a note to clients, Moss said that large Bitcoin investors, commonly referred to as whales, have been offloading their positions into market weakness. He noted that these holders shifted to net sellers over the weekend after steadily accumulating Bitcoin since early January, suggesting a significant change in market behavior at the top end of ownership. Selling pressure has also emerged from retail investors who gained exposure to Bitcoin through spot exchange‑traded funds (ETFs). Moss pointed out that net outflows from spot Bitcoin ETFs during the weeks of January 19 and January 26 ranked as the second‑ and third‑largest since those products were launched. Those withdrawals were followed by another wave of substantial outflows on February 4, adding to downward pressure on prices, which coupled with ETF outflows, has reignited familiar concerns across the crypto market. Moss said renewed talk of a “ Crypto Winter ” is spreading, warning that there are few convincing signs that Bitcoin is nearing a bottom. He added that the lack of buying activity from small‑ and medium‑sized holders suggests that dip‑buying sentiment remains weak, a factor that often signals further downside risk. Analysts Divided On Bitcoin’s Next Move Other analysts echoed the cautious outlook. Deutsche Bank strategist Henry Allen noted that Bitcoin’s recent drop marked its worst single‑day decline since November 2022. That period coincided with the collapse of Sam Bankman‑Fried’s FTX exchange , an event that wiped out billions of dollars in customer funds and sent shockwaves through the digital asset industry. Chevy Cassar, author of the Milk Road newsletter, described the current environment in stark terms, acknowledging that the downturn is painful and warning that conditions could deteriorate further. Based on historical patterns, Cassar said crypto markets often take anywhere from one month to nearly a year to reach a true bottom after major declines. Still, not all observers see the current moment as purely negative. Fabian Dori, chief investment officer at Sygnum Bank, said the market may be approaching a point of exhaustion . Dori said sentiment appears to be entering what he described as “peak fear territory,” a phase that has historically preceded stabilization or recovery in past cycles. At the time of writing, BTC has recovered to its current trading price of $70,667 and has seen a 10% surge within the last 24 hours. Featured image from OpenArt, chart from TradingView.com
