Bitcoin Bounces 3.23% in Under 20 Minutes, Ethereum Rebounds 4.14%

Bitcoin rebounded 3.23% in under 20 minutes on February 3, 2026, while Ethereum surged 4.14% over the same period, reflecting a short-term bounce amid continued volatility according to market data. The recovery came after Bitcoin fell to a two-month low on Thursday and Ethereum recorded a larger daily percentage drop. Despite the rebound, broader market conditions remain uncertain, with macroeconomic factors and regulatory delays affecting investor confidence as reported.

Bitcoin's brief recovery followed $562 million in inflows to spot Bitcoin ETFs on Monday, the first inflow after four consecutive outflows, according to SoSoValue. Meanwhile, Ethereum ETFs continued to see outflows, with a minor withdrawal of $2.9 million recorded on Monday. The inflows were partly attributed to the ETF cost basis being underwater, suggesting near-term support levels as noted.

Capstone LLC released its 2026 healthcare and energy sector outlooks, highlighting shifts in policy and market structures expected to influence investment strategies according to Morningstar. The firm predicted that Medicare Advantage carriers would benefit under the Trump administration while Medicaid-exposed providers would face challenges due to constrained rate growth. In the energy sector, Capstone noted policy tensions over data center development and grid reliability, particularly in Texas and Pennsylvania as detailed.

Why Did This Happen?

Bitcoin's price movement was partly influenced by a brief surge in ETF inflows and a drop in selling pressure from long-term holders. Galaxy Digital's Alex Thorn noted that Bitcoin had traded below the average ETF create cost basis of $84,000, a level not seen since summer 2024 according to Cointelegraph. This level has historically served as a support during previous bull markets, according to Thorn. Additionally, the price of Bitcoin briefly surged above $79,000 after trading as low as $74,604 on Monday as reported.

Ethereum's sharp rebound was less driven by ETF inflows, as the asset continues to face headwinds. Ether ETFs recorded outflows for the third consecutive day, with cumulative inflows now at $11.97 billion. Ethereum's price remains below key moving averages, signaling bearish momentum according to market analysis.

How Did Markets Respond?

The broader crypto market capitalization stood at $2.65 trillion on February 3, up 1.7% in 24 hours. Positive sentiment in global financial markets provided some support to crypto, though local resistance at $2.65-2.68 trillion limited the upward momentum as noted.

Bitcoin's 2.3% rebound on Monday did not offset the $1.5 billion outflows recorded last week, with ETFs still facing pressure from institutional selling and macroeconomic uncertainty according to Cointelegraph. The market's response to the ETF inflows was cautious, with analysts expecting continued volatility and potential for a dead-cat bounce pattern as forecasted.

Bitcoin's 4-hour chart showed a sharp sell-off after closing below $80,000 on Saturday, hitting a low of $74,604 before rebounding. The price then closed 2.3% higher, but the primary trend remains bearish. A close above $80,000 could signal a potential extension toward $82,602, the 50% Fibonacci retracement level according to market data.

What Are Analysts Watching Next?

Market observers are closely watching the movement of Bitcoin ETFs and their impact on price. The $562 million inflow on Monday partially offset a $1.5 billion outflow from the previous week, but ETFs remain under pressure according to analysis. Analysts like Eric Balchunas noted that Bitcoin's recent underperformance against gold and silver was "very short-sighted," given its dominance in 2023 and 2024 as reported.

Investor sentiment remains mixed. While Bitcoin's RSI is in oversold territory, suggesting potential for a rebound, the broader market remains bearish. The Moving Average Convergence Divergence (MACD) indicator remains below its signal line, signaling continued bearish momentum according to market data.

The market is also watching for signs of regulatory clarity, particularly regarding the U.S. CLARITY Act. Passage of this legislation could provide a near-term catalyst, though odds of approval have diminished in recent weeks as noted. Additionally, the price of Bitcoin is expected to continue trading in a wide-ranging consolidation phase, with analysts like Ki Young Ju of CryptoQuant noting that this phase could last for several months according to Coindesk.

Bitcoin's price could test support levels at $78,000 and $73,072 in the coming days, with a break below $78,000 potentially leading to a further decline toward $74,604 as forecasted. A successful rebound above $80,000 would be a positive signal for the market, but sustained buying pressure is expected to be crucial for a broader reversal according to market analysis.

Bitcoin's recent performance has also affected corporate holdings. Strategy, which holds $60 billion in Bitcoin, and BitMine, with $11.9 billion in Ethereum, have both seen their stock prices drop nearly 10% amid the market downturn according to Decrypt. The decline in price has created paper losses for corporate investors, with BitMine's losses estimated at $6.95 billion as reported.

Market participants are also monitoring the impact of U.S. government shutdown risks and broader macroeconomic factors. The U.S. Senate's failure to pass a continuing resolution on Thursday added to investor uncertainty, with lawmakers now facing a deadline to strike a deal before the weekend as noted. These developments could influence market sentiment and crypto prices in the short term.