Bitcoin bounces back from 16-month low, reclaims and holds $70k level

Investing.com -- Bitcoin surged on Friday, reclaiming the key $70,000 level and holding above it, amid a broader rally in equities and commodities.

The world’s largest cryptocurrency was up 8.6% to $70,826.9 as of 14:53 ET (19:53 GMT).      

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Following a "flash crash" in October 2025, cryptocurrencies had been rapidly losing steam, and last Friday’s nomination of Kevin Warsh proved to be a major catalyst for another leg lower that led to bitcoin cratering to a 16-month low of $60,187.0, in the process erasing all gains made since President Donald Trump’s election victory in November 2024.

A substantially wider fourth-quarter loss reported by top corporate holder Strategy (NASDAQ:MSTR) on Thursday had further clouded the gloom.

Despite Friday’s gains, bitcoin was still headed for weekly losses of about 10.5%. The crypto is now about 44% lower from its record high, deep in bear market territory.

"In historical context, the drawdown remains consistent with prior Bitcoin cycles during periods of macro tightening, which have typically been associated with extended consolidation and volatility compression rather than immediate trend reversals," Dessislava Ianeva, analyst at Nexo Dispatch, said.

Bitcoin set for three-week losing streak 

Bitcoin was headed for a third straight week of losses. 

The crypto was battered by a broader exodus out of risky, speculative assets in recent weeks, with losses intensifying after Trump’s nomination of Warsh. 

Warsh was viewed as a less dovish pick, specifically given that he has opposed the Fed’s asset buying programs. This trend could see the Fed maintain a leaner balance sheet in the long term– a scenario that is expected to tighten monetary policy and pressure speculative assets such as crypto. 

Investors dumped risk-driven assets across the board following Warsh’s nomination. An extended rout in U.S. technology stocks – which crypto tends to track – also spilled over into the sector. 

"During risk-off periods, investors tend to rotate into safer and more liquid assets such as U.S. Treasuries, cash, and defensive equity sectors," Nexo’s Ianeva said. 

"As a result, higher-beta assets, including tech stocks and cryptocurrencies, often see temporary outflows during these phases, reflecting portfolio risk management rather than structural exits," she added.

Strategy Q4 loss widens sharply amid Bitcoin weakness

Strategy (NASDAQ:MSTR) reported a substantially bigger loss for the fourth quarter on Thursday– at $12.4 billion, compared to the prior year’s reading of $670.8 million. 

The loss was fueled chiefly by sustained underperformance in bitcoin prices since October. The crypto has largely failed to gain any substantial ground after the flash crash. 

Strategy holds 713,502 Bitcoins as of February 1, at an average cost of $54.26 billion or $76,052 per Bitcoin. With the crypto now trading below Strategy’s average price, markets grew concerned that the company may be pushed into selling some of its holdings to meet its debt obligations. 

The company, which is led by Bitcoin proponent Michael Saylor, has fueled its Bitcoin purchases through a mix of debt instruments and new share issuances. 

Crypto price today: altcoins also head for weekly losses 

Broader crypto prices tracked a recovery in bitcoin, but were also nursing steep losses over the past week. 

World no.2 crypto Ether rose 7.2% to $2,065.38, but was down about 16% for the week.

XRP rose 20.2%, but was headed for a weekly decline of nearly 12%.

Solana was on track for a 18% weekly loss, while Cardano was down around 5%.

Among memecoins, Dogecoin was down 5.2% for the week, while $TRUMP was down about 17%. 

Ambar Warrick and Vahid Karaahmetovic contributed to this article