Bitcoin Surges to $68K While Extreme Fear Still Dominates Markets
Key takeaways:
Crypto market cap is hovering around $2.33 trillion, down slightly on the day
The Fear & Greed Index has dropped to 5, marking a yearly low and extreme fear
Bitcoin is trading near $68,300, showing short-term stabilization
Altcoins remain mixed, with selective strength despite broader risk aversion
Total market capitalization stands near $2.33 trillion, slightly lower on the day, while several major assets are posting modest short-term gains following a volatile sell-off earlier in the week.
Despite the bounce, market conditions remain fragile. The average crypto relative strength index has recovered to around 44, suggesting selling pressure has eased compared to recent extremes, but momentum remains far from overbought territory.
Bitcoin stabilizes as fear dominates sentiment
Bitcoin is trading around $68,300, posting gains on the one-hour and daily timeframes, while still down more than 18% over the past seven days. Trading volume remains elevated, indicating active positioning as traders reassess risk following the sharp correction.
Historically, readings of extreme fear have coincided with periods of heightened volatility and, in some cases, medium-term market bottoms. However, such conditions can also persist, particularly when macro uncertainty and deleveraging pressures remain unresolved.
Ethereum and several large-cap altcoins are showing similar patterns – short-term relief rallies within a broader corrective structure. Notably, XRP has outperformed on the day, while Solana and BNB remain under pressure on higher timeframes.
Overall, the market appears to be in a pause-and-assess phase rather than a confirmed recovery. With sentiment deeply pessimistic and positioning still cautious, the next directional move is likely to depend on whether buyers can sustain momentum—or whether renewed volatility tests confidence once again.
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Filed under: Bitcoin - @ February 6, 2026 3:22 pm