BTC (Bitcoin) down 5.66% in the past 24 hours

Gate News Bot Message, February 5th, according to CoinMarketCap data, as of press time, BTC (Bitcoin) is trading at $72,285.51, down 5.66% in the past 24 hours, with a high of $84,602.16 and a low of $71,854.12. The 24-hour trading volume reached $67.75 billion. The current market capitalization is approximately $1.44 trillion, a decrease of about $86.615 billion from yesterday.

Bitcoin is an innovative payment network and a new form of currency. Bitcoin operates using peer-to-peer technology without the need for a central authority or bank; transaction management and issuance are handled collectively by the network. Bitcoin is open-source; its design is public, and no one owns or controls Bitcoin, allowing everyone to participate. Through its many unique features, Bitcoin supports exciting applications that were previously impossible with traditional payment systems. Bitcoin features fast peer-to-peer transactions, global payments, and low processing fees.

Recent Important News About BTC:

1️⃣ Macro Liquidity and Dollar Yield Spread Suppress Risk Asset Performance
Despite the US dollar index falling 10% over the past year, Bitcoin has instead fallen 13% during the same period, forming an unusual negative correlation. The current dollar weakness is driven by short-term capital flows and market sentiment, rather than changes in growth or monetary policy expectations. The dollar interest rate spread has actually favored the dollar since the beginning of the year, and this structural factor has prevented Bitcoin from acting as a typical dollar hedge. The market does not see the current dollar decline as a lasting macro shift, so Bitcoin is still viewed as a liquidity-sensitive risk asset rather than a reliable store of value. This causes it to underperform compared to gold and emerging market assets during risk-off rotations.

2️⃣ High Leverage Positions in Derivatives Market Trigger Large Liquidations
In the past 24 hours, total liquidations across the network ranged from $230 million to $350 million, with Bitcoin long positions liquidated at $43.85 million and short positions at $23.85 million. The liquidation of high-leverage positions creates a positive feedback loop with falling prices, intensifying market volatility. If Bitcoin drops below $84,193, the cumulative long liquidation on major centralized exchanges could reach $829 million, and the existence of liquidation zones constrains the market’s one-sided movement. Some aggressive traders used 40x leverage to long 200 BTC or short 71.31 BTC, suffering massive liquidations during price swings, with the largest single liquidation reaching $12.47 million, reflecting significant current market risk exposure.

3️⃣ Bitcoin Ecosystem Infrastructure Upgrades Progress but Lack Price Support
GOAT Network officially launched BitVM2 testnet V3, enabling Bitcoin to participate in real financial activities without the need for custodians or multi-signature trust assumptions. Citrea launched its mainnet, offering BTC-native lending and government bond stablecoins, attracting institutional support from Peter Thiel and Galaxy. Mezo Bitcoin Financial Network released the first phase token airdrop, distributing 19.82 million tokens to over 11,000 addresses. These infrastructure upgrades expand Bitcoin’s economic utility, but in the short term, the market has not fully absorbed the value enhancement from these developments.

4️⃣ Spot ETF Holdings Adjustments and Capital Outflows
Yesterday, Bitcoin spot ETF experienced a net outflow of $19.645 million, with BlackRock’s IBIT leading with a net outflow of $14.179 million, while Fidelity’s FBTC saw a net inflow of $19.45 million. The decline in ETF holdings and capital outflows reflect risk-averse behavior by investors facing unrealized losses. The total net asset value of spot ETFs is $115.351 billion, with a net asset ratio of 6.48%. The average entry price for investors is around $86,000, and current prices fluctuate around this level, directly influencing capital flow expectations.

5️⃣ Risk-Off Asset Rotation Diverts Market Attention
Gold’s market cap increased by approximately $1.64 trillion in 24 hours, approaching Bitcoin’s current total market cap of $1.44 trillion. Gold prices broke through $5,500 per ounce, driven mainly by the dollar’s earlier weakness, geopolitical risks, and demand for store-of-value assets. Traders warn that the crypto market’s focus on Bitcoin is being diverted by the continued strength of gold and silver, which could pose downside risks for BTC. Meanwhile, Swiss crypto bank Sygnum’s market-neutral Bitcoin fund has completed seed funding, attracting over 750 BTC, with an annualized return of 8.9% in Q4, indicating some institutional investors are shifting toward lower-risk strategies rather than direct exposure.

This message is not investment advice. Please be aware of market volatility risks.