Bitcoin Price Declines to $97,672 Amid $357 Million Liquidation

Bitcoin's price closed at approximately $97,672 on February 5, down over 3% after failing to break above $102K. In the last 24 hours, more than $357 million was liquidated, with over $88 million involving Bitcoin. The fear and greed index dropped from 72% to 54%, indicating a shift to neutral sentiment. Daily active addresses fell from over 790K to around 224K.

BlackRock’s IBIT Activity

BlackRock's iShares Bitcoin Trust (IBIT) continues to buy Bitcoin despite the bearish outlook.
IBIT purchased 2,520 BTC, with only 450 mined recently.
Net cash inflow for IBIT was about $249 million, increasing assets to approximately $57 billion.
US spot BTC ETFs reported net cash inflows of about $340 million, with no outflows.

Bitcoin Price Outlook

Bitcoin has been trading in a horizontal channel for three months in preparation for a macro bull run in 2025.
Currently showing signs of correction towards a support level above $91.5K.
A bullish reversal will occur if it closes above the falling logarithmic trend and regains the 100 Moving Average as support.

Market Context

Mainstream adoption is expanding through institutional investors and nation-states like the US and El Salvador.
Recent developments include an Executive Order by President Trump to create a sovereign wealth fund focused on digital assets.
David Sacks announced efforts to promote clear regulatory frameworks for crypto adoption.
Rising demand from whale investors could trigger a rally similar to the 2017 cycle.