Bitcoin Rebounds to $70,000 After Brutal 2022-Style Plunge; Analysts Eye $100,000 Year-End Target

Bitcoin staged a defiant recovery Friday, recapturing the psychological $70,000 threshold after a harrowing 24-hour period that saw the digital asset suffer its steepest one-day decline since the collapse of the FTX exchange in 2022.

The world’s largest cryptocurrency climbed more than 11% to trade as high as $71,600, according to CoinDesk data, providing much-needed relief to a market that had been in a state of freefall. The rebound follows a “Black Thursday” for crypto investors, during which Bitcoin’s price cratered to an intraday low of $60,057.

The recovery has reignited debates among Wall Street strategists regarding the asset’s bottom. While some warn of a “Crypto Winter” in 2026, others maintain that the structural foundations of the market—bolstered by institutional ETFs—could propel Bitcoin back toward $100,000 before the year is out.

Anatomy of a Crash: What Triggered the $60,000 Test?

The midweek rout wiped out more than $500 billion in total crypto market capitalization in just seven days. Several factors converged to create a “perfect storm” of selling pressure:

• Macroeconomic Anxiety: Uncertainty surrounding the Federal Reserve’s interest rate path and the nomination of Kevin Warsh as Fed Chair has pushed investors toward “risk-off” assets.
• ETF Outflows: Data from Deutsche Bank revealed that U.S. spot Bitcoin ETFs saw over $3 billion in withdrawals in January, signaling a cooling of the “Bitcoin Boomer” adoption phase.
• Mass Liquidations: Nearly $1 billion in leveraged long positions were liquidated within 24 hours on Thursday, creating a cascade effect that forced prices lower.
• Corporate Exposure: Shares of “Bitcoin Treasury” companies like Strategy (formerly MicroStrategy) plummeted as the market realized many of their recent purchases were “underwater,” with an average acquisition price reportedly around $76,000.

‘Capitulation’ or ‘Buying Opportunity’?

The sharp bounce from $60,000 suggests that significant “buy the dip” demand remains. Julio Moreno, head of research at CryptoQuant, noted that buying volume surged as prices touched the $60,000 level, a sign of institutional or “whale” accumulation.

“It seems like a relief rally after the share-price decline of the last few days,” Moreno told MarketWatch. “In the futures market, the open interest declined while prices increased, which suggests short positions were closed or liquidated.”

However, the road ahead remains fraught with technical hurdles. Bitcoin is still down roughly 43% from its record intraday high of $126,272 reached in October 2025. For many retail investors who entered the market during the post-election surge in late 2024, the current “recovery” to $70,000 still leaves them deep in the red.

The 2026 Outlook: Price Predictions and Targets

Despite the recent carnage, the long-term sentiment among crypto-native analysts remains cautiously optimistic.

“From a sentiment perspective, comparisons across cycles are always imperfect, but anecdotally there is an outsized sense of fear and fatigue,” wrote Sean Farrell, head of digital assets at Fundstrat. Farrell noted he is increasing net long exposure but leaving “wiggle room” for another potential dip into the $50,000s if macro conditions worsen.

The ‘Trump Effect’ Fades

The 2026 slump has notably erased all gains made since President Trump’s election in November 2024. While the administration’s pro-crypto rhetoric initially fueled a massive rally, the lack of movement on key legislation—such as the stablecoin bill—and concerns over conflict-of-interest investigations into Trump-related crypto ventures like World Liberty Financial have dampened investor enthusiasm.

As of Saturday, Bitcoin continues to consolidate around the $70,000 mark. Traders are closely watching the $75,000 resistance level; a break above this could signal the end of the “mini-bear” market, while a failure to hold $68,000 could lead to a retest of the week’s lows.