Bitcoin ($BTC) is facing notable challenges in recovery while spot demand is still absent. Specifically, Bitcoin (BTC) has lost all the profits it recorded since the victory of Donald Trump in the November 2024 election. As per the latest report from Wintermute, the leading crypto asset dipped below the $80K mark to $59,850, denoting the 1st time since April last year. The sell-off underscores the fragility of the rallies witnessed recently, draining more than $2.7B over the weekend.
— Wintermute (@wintermute_t) February 10, 2026
BTC Selloff Deepens Amid $2.7B in Weekend Liquidations
The Bitcoin ($BTC) downturn primarily resulted from U.S. capital flows, leading to a massive sell-off. In this respect, a staggering $2.7B has left the market during the weekend. The respective development signifies the role that leverage-led trading played in increasing volatility within the crypto industry. Hence, Coinbase premiums turned negative while spot ETFs recorded $6.2B in total outflows following November.
Additionally, the biggest spot $BTC ETF, $IBIT, has become both the largest holder as well as a crucial incremental supply source, increasing selling pressure. So, Bitcoin ($BTC) requires the renewal of spot demand for its structural recovery. Similarly, macro catalysts have also added to the broader $BTC selloff. These events included the nomination of Warsh as the new Fed Chair, a noteworthy correction in the price of precious metals, and disappointing earnings from the top tech platforms. This lack of sustained buying from spot investors has left Bitcoin’s recent rebounds largely driven by derivatives activity, making them vulnerable to sharp reversals without genuine market support.
As a result of this, the global markets are witnessing a risk-off approach. As the market data indicates, the 40% crash of silver in just 3 days has amplified the investor anxiety. Whereas the 10% earning-led drop of Microsoft has also shown the wider tech vulnerability. Above all, the 50% drawdown of Bitcoin ($BTC) from the October 2025 ATH of up to $126,000 suggests the steepest price decline the top crypto asset saw since 2022. At the same time, the rotation of capital into AI investments has also emerged as a key contributing factor.
Flagship Cryptocurrency’s Recovery Hinges on Renewed Demand in Spot Market
According to Wintermute, irrespective of the significant leverage flush-out, Bitcoin (BTC) has the possibility of recovery. Keeping this in view, the leading cryptocurrency requires a resurgence in pot demand for its structural recovery. While open interest is still thin amid the sharply negative funding rates, the price action of $BTC remains leaned toward further fluctuation. At the moment, Bitcoin ($BTC) is going through a choppy period with elevated volatility, with recovery prospects closely depending on the renewal of actual demand in the spot market.