Bitcoin Price Rebounds to $70,000 After Worst Daily Drop

Bitcoin has rebounded to $70,000 after prices fell as low as $61,000 following a 13 percent plunge, the steepest one-day drop for the cryptocurrency since the FTX collapse in November 2022, Ines Ferré reported for Yahoo Finance.

Strategists have also warned that bitcoin could still drop further.

The recovery reversed a wave of intense selling that surged through Thursday night, briefly pushing bitcoin’s decline to more than 50 percent since its peak of $126,000 last October.

“From a sentiment perspective, comparisons across cycles are always imperfect, but anecdotally there is an outsized sense of fear and fatigue among crypto-native participants,” Sean Farrell, head of digital assets at Fundstrat, wrote in a recent note.

The strategist said he was increasing net long exposure to 80 percent in his portfolio, but “leaving some wiggle room for another visit into the [$50,000s].”

Other strategists have also warned that bitcoin could still drop further. 10X Research recently highlighted a significant overhang for the crypto market: overexposed bitcoin ETF holders who are underwater, with an estimated average acquisition price of around $90,000.

A similar dynamic is also playing out with ethereum (ETH) ETFs.