Bitcoin edged lower over the weekend, trading around $68,917 after a 1.1% decline, while Ethereum remained relatively stable near $2,036. The muted activity precedes the reopening of U.S. markets, where crypto-linked equities and exchange-traded funds will resume trading.
ETF Flows and Liquidity Concerns
U.S. spot bitcoin ETFs experienced a notable shift in capital movement. After recording outflows of $434.1 million on February 5, the funds attracted $330.7 million in net inflows the following day. BlackRock's iShares Bitcoin Trust accounted for a significant portion of this inflow, gathering approximately $231.6 million.
Market analysts point to declining liquidity as a potential risk. Data indicates bitcoin's 1% market depth—a measure of order book liquidity—has fallen to roughly $5 million, down from over $8 million in 2025. "This contraction has been underway for several months," noted one analyst, suggesting thinner conditions could amplify price moves.
Volatility in Crypto-Linked Equities
Publicly traded companies with digital asset exposure mirrored bitcoin's recent swings. Strategy shares, for instance, plunged to $111.27 on Thursday before rallying 26% by Friday's close. Such stocks often serve as leveraged proxies for cryptocurrency performance, attracting heightened scrutiny during downturns regarding their funding and balance sheet resilience.
"It's clear the crypto market is now in full capitulation mode," remarked Nic Puckrin of Coin Bureau, reflecting the tense sentiment. However, some observers see potential for a turnaround, citing reduced selling pressure from large bitcoin holders controlling 10,000 or more units.
Macroeconomic Crosscurrents
The broader financial landscape presents headwinds. The upcoming U.S. consumer price index report, scheduled for February 13, will be closely monitored. Strong inflation data could dampen expectations for interest rate cuts, a scenario that has previously pressured risk assets including cryptocurrencies.
As Monday's session approaches, traders are focused on whether bitcoin can maintain support above $70,000. A failure to hold this level could renew attention on last week's lows near $61,000, setting the tone for near-term price action.
