news.bitcoin.com
On Feb. 6, 2026, bitcoin rebounded 15% from the previous day of just below $60,000 to over $71,000, restoring its $1.4 trillion market cap after a sharp selloff.
Liquidation Engine: The Mechanics of the Rebound
On Feb. 6, 2026, bitcoin finally halted a harrowing freefall that had effectively neutralized the “Trump Bump,” erasing nearly all gains made since the 2024 U.S. presidential election. After a brief dip below $60,000, the cryptocurrency staged a massive 15% recovery from its intraday lows, rallying past $71,000. This reversal restored bitcoin’s market capitalization to more than $1.4 trillion, breathing life back into a market that had been teetering on the edge of a structural bear cycle.
The rebound was as mechanical as it was emotional, driven by a “short squeeze” of significant proportions. Data reveals that more than $120 million in bitcoin short positions were wiped out in one hour as the price surged. For the second consecutive day, total leveraged liquidations across the crypto market exceeded $1 billion.
Read more: Is the Bottom in? Bitcoin Tests $65,253 as Market Panic Takes Hold
Mirroring the crypto market’s resilience, U.S. equity indices staged a fierce counterattack as bargain hunters swooped in following a bruising week. The Nasdaq composite surged more than 400 points, or 1.86%, to 22,954, led by a recovery in major tech names, while the Dow Jones Industrial Average rocketed by 1,000 points, or 2%. The S&P 500 followed suit, gaining 1.65%, or 112 points. However, at the time of writing, the Nasdaq was still down 1.65% over five trading days.
While some analysts pointed to the U.S. State Department’s directive for citizens to leave Iran as a catalyst for Thursday’s panic, a broader consensus suggests this was secondary to deeper structural issues. Experts at the Kobeissi Letter argue the crash was primarily driven by institutional unloading, noting that hedge funds sold U.S. single stocks at the fastest rate since October.
Market observers also cited a dual blow of cooling labor data and mounting skepticism over massive artificial intelligence (AI) capital expenditures as the primary drivers of the downturn.
However, sentiment shifted decisively on Friday following the announcement of the U.S.-Argentina Agreement on Reciprocal Trade and Investment. This landmark deal lowers long-standing trade barriers and provides unprecedented market access for American motor vehicles and agricultural exports. Furthermore, the agreement establishes a framework for critical minerals essential to the high-tech and defense sectors, providing a fresh tailwind for U.S. industrial stocks and helping to stabilize the broader market.
Meanwhile, Matthew Sigel, head of digital asset research at Vaneck, noted that the crypto carnage may have reached a mathematical limit as technical indicators hit historically distressed levels. He added:
“On a continuation chart of Bitcoin futures, momentum oscillators such as RSI have fallen below 21, an extreme oversold level that has historically preceded periods of stabilization and relief rallies.”
Sigel emphasized that while many investors remain anchored to the four-year cycle framework, recent price action has been driven more by leverage dynamics and institutional positioning than by cycle timing.
FAQ ❓
- What happened to bitcoin on Feb. 6, 2026? Bitcoin rebounded 15% from lows near $60K to rally past $71K, restoring its $1.4T market cap.
- What triggered the crypto rebound? A massive short squeeze wiped out $120M in positions, driving $1B+ in liquidations across markets.
- How did U.S. equities react? The Nasdaq, Dow, and S&P surged as bargain hunters returned, though weekly losses remained.
-
What boosted sentiment globally?
The U.S.-Argentina trade pact opened new markets for autos, agriculture, and critical minerals.