The price of Bitcoin saw a dramatic rebound on Friday, surging briefly above $71,000. This significant increase marked an $11,000 jump from its earlier low of $60,000, following a steep sell-off that occurred over the preceding 24 hours. The cryptocurrency's recovery came after several turbulent market sessions where it broke crucial psychological support levels in a short span of time.

The preceding downturn on Thursday, February 5, saw Bitcoin's price plunge amidst a broader deterioration in global financial markets. Major stock indices experienced sharp declines, prompting investors to pull out of riskier assets. This sudden market stress was linked to various macroeconomic factors, including weak earnings reports and substantial drops in technology stocks, which intensified a widespread flight to safety among traders.

Data compiled on Thursday indicated that Bitcoin's value had fallen to its lowest point since late 2024, signaling a growing bearish sentiment among market participants. The digital asset had retreated more than 40% from its all-time high above $126,000 reached in October, underscoring the severity of the market correction. Concurrently with Bitcoin's price collapse, forced liquidations soared, with over $1 billion in positions—primarily long bets—being wiped out within 24 hours as BTC breached key support levels.

Despite the substantial losses incurred on Thursday, Bitcoin's rebound on Friday propelled prices from the $60,000 region back above the $70,000 mark, achieving a nearly 15% recovery from its intraday lows. This resurgence also triggered massive gains in crypto-related stocks. Strategy ($MSTR) shares climbed 21% on the day, while Coinbase ($COIN), Circle ($CRCL), and Robinhood ($HOOD) shares each jumped by 10-15%.

Bitcoin-linked equities also posted sharp gains. MARA Holdings (MARA) rose 21.03% to $8.14, and TeraWulf (WULF) increased by 19.55% to $14.25. Riot Platforms (RIOT) saw a 16.54% increase to $14.05, and Cipher Mining (CIFR) added 15.47% to reach $14.66. Bitmine Immersion Technologies (BMNR) gained 15.43% to $20.08, and Core Scientific (CORZ) advanced 10.43% to $16.36. Neptune Digital Assets (NDA) also climbed, rising 11.43% to $0.78.

During the market drop, the iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF managed by BlackRock, set a new daily volume record. Approximately $10 billion worth of shares were traded, even as its price plunged 13%, marking its second-worst one-day decline since its launch. Currently, Bitcoin is trading at $70,661.