Bitcoin (BTC) is fighting to stabilize above the critical $70,000 support level this weekend following a brutal sell-off that wiped out nearly 50% of its value from the October 2025 all-time high. As of Saturday, February 7, 2026, the flagship cryptocurrency is staging a fragile Bitcoin price rebound in Feb 2026, trading near $71,000 after plummeting to a shocking low of roughly $60,000 on Thursday. This volatility marks the asset's most severe downturn since the crypto winter of 2022, leaving investors questioning whether the crypto market recovery today is sustainable or a "dead cat bounce" before further losses.

BTC $70k Support Level Tested Amid Massive Deleveraging

The crypto market crash of 2026 has been driven by a perfect storm of macroeconomic fears and institutional liquidation. On Thursday, Bitcoin crashed through key psychological barriers, briefly touching $60,256 before retail buyers stepped in to defend the line. This 17% intraday plunge—the steepest single-day drop in years—was fueled by a massive deleveraging event. Data from Coinglass reveals that Bitcoin futures open interest collapsed from $61 billion to $49 billion in just one week, signaling a rapid exit of leveraged positions.

Market analysts point to the BTC $70k support level as the line in the sand. "If we fail to consolidate above $70,000 this weekend, the door opens to retest the $60,000 lows," warned a senior analyst at VanEck. The current price action suggests a tug-of-war between retail conviction and institutional capitulation, with trading volumes spiking to their highest levels since late 2024.

Strategy Inc. (MicroStrategy) Bitcoin Holdings Update

Amid the chaos, all eyes turned to the largest corporate holder of Bitcoin, Strategy Inc. (formerly MicroStrategy). In a highly anticipated MicroStrategy Bitcoin holdings update released alongside their Q4 2025 earnings this week, the company revealed a staggering net loss of $12.4 billion, primarily due to unrealized losses on their digital assets. Despite the red ink, the firm remains defiant.

Executive Chairman Michael Saylor took to X (formerly Twitter) with a brief but clear message: "Don't panic." The company confirmed it now holds a massive 713,502 BTC, acquired at a total cost of roughly $54.26 billion. Strategy Inc. also noted it purchased an additional 41,002 Bitcoin in January 2026 alone, doubling down on its treasury strategy even as the market wobbled. While MSTR stock took a 17% hit on Thursday, it rebounded 21% on Friday, mirroring the underlying asset's volatility.

Institutional Crypto Sell-Off News: What Triggered the Crash?

The institutional crypto sell-off news dominating headlines this week identifies multiple triggers beyond simple profit-taking. A major factor has been the rotation of capital into traditional safe havens. Bitcoin vs Gold reserve trends have diverged sharply in February 2026; while Bitcoin shed value, gold and silver prices surged to historic highs amid escalating geopolitical instability involving US foreign policy shifts in Greenland and Venezuela.

Geopolitical Tensions and Fed Fears

Adding fuel to the fire is the uncertainty surrounding the Federal Reserve. President Trump's recent nomination of Kevin Warsh for Fed Chair has rattled markets, with investors unsure about the future of interest rate cuts. This anxiety, coupled with a 4.8% slide in the Nasdaq due to a broader tech stock sell-off, forced institutional players to liquidate liquid assets like Bitcoin to cover margin calls elsewhere. Unlike previous crashes triggered by single events like the FTX collapse, this downturn appears to be a systemic liquidity crunch.

Crypto Market Recovery Today: A Fragile Path Forward

As traders watch the crypto market recovery today, the sentiment remains comprised of "extreme fear." The 50% retracement from the $126,080 record high reached in October 2025 is a textbook correction in Bitcoin's volatile history, yet the speed of the descent has rattled confident hands. The Bitcoin price rebound Feb 2026 depends heavily on whether spot ETF outflows stabilize next week.

For now, the $70,000 floor is holding. However, with global tensions high and macroeconomic policy in flux, the path to reclaiming $100,000 looks steeper than ever. Investors are advised to watch the $68,500 and $72,000 levels closely in the coming days to gauge the market's true direction.