Bitcoin Rocketed 15% to Get Back Above $70,000 but the Options Market is Pricing in a Terrifying New Floor

Bitcoin rebounded 15% on February 7, 2026, pushing back above the $70,000 level. The rebound came after a significant correction in early February, where Bitcoin briefly dropped below $60,000, triggering over $1.1 billion in leveraged liquidations globally.

Despite the rebound, the options market suggests growing bearish sentiment. Open interest for Bitcoin options remains elevated, but implied volatility data indicates traders are pricing in a new floor as low as $50,000. This suggests continued uncertainty about the near-term price direction.

Bullish, the institutionally focused digital asset exchange, reported a Q4 2025 net loss of $564 million. This came despite record growth in options trading, with volumes surpassing $9 billion and open interest hitting $4 billion by the end of January.

Why Did the Move Happen?

Bitcoin's 15% rebound was driven by short-term buying pressure after the sharp sell-off. The price briefly fell to $60,000, triggering a wave of liquidations across the derivatives market. Traders and investors scrambled to add liquidity and stabilize positions.

The rebound came as a relief for long-position holders who faced heavy losses in early February. The derivatives market recorded $2.6 billion in liquidations during the week of February 5, with long positions losing $2.13 billion compared to $469 million for short positions.

How Did Markets React?

The market reaction was mixed. Bitcoin's open interest dropped by $55 billion in 30 days, reflecting widespread position closures. This suggests traders are deleveraging and reducing exposure rather than adding to longs.

Ethereum also saw significant outflows from spot ETFs, with institutional investors pulling nearly $81 million in one day. XRP ETFs recorded smaller but positive inflows, marking three consecutive days of gains.

Bullish shares traded volatile after the earnings report. The stock fell as much as 11% in pre-market trading before stabilizing around $26.00.

What Are Analysts Watching Next?

Analysts are closely watching key support levels and macroeconomic signals. Bitcoin's RSI hit 23 on the daily chart, indicating bearish momentum may be easing. However, the MACD remains overextended below the signal line, confirming a bearish outlook.

On the institutional side, Nomura defended its crypto strategy at Laser Digital, stating it remains committed to long-term growth while tightening short-term risk controls. The firm emphasized that its risk management framework performed as designed during recent market turmoil.

Vietnam is also preparing to introduce a tax framework for crypto transactions. The proposed 0.1% levy on trading aligns digital assets with securities trading and aims to bring more regulatory clarity.

Investors are also watching regulatory developments in the U.S. The Bull Moose Project is urging senators to pass a crypto market structure bill, which would provide clear guidelines for the industry and help position the U.S. as a global crypto hub.