“Users are buying more than ever before”: Strong recovery for Bitcoin and crypto assets after crash

“Users at 21bitcoin are buying more than ever before,” announced Daniel Winklhammer, CEO of the Austrian startup 21bitcoin, on Friday evening. What his Bitcoin app is currently seeing, other providers in the market are likely seeing as well: Following massive price losses, crypto investors are increasingly taking the opportunity to buy BTC and other cryptocurrencies more cheaply.

After the sharp crash to temporarily just 61,000 dollars, there is some recovery for the largest cryptocurrency and other crypto assets in the market over the weekend. The Bitcoin price recovered significantly from its crash on Thursday during Friday evening and Saturday morning, rising temporarily above the 70,000 dollar mark. After the cryptocurrency fell to around 60,000 dollars on Thursday, it recorded an increase of approximately 17 percent and was trading at just under 68,400 dollars on Saturday morning.

The crash had brought Bitcoin to its lowest level in 15 months and marked a decline of 50 percent compared to the all-time high of 126,000 dollars, which was reached in October 2025. Other cryptocurrencies also showed recovery, although the losses of the past 7 days could not be made up:

Here is the table with renamed columns:

The dramatic price collapse on Thursday triggered massive liquidations in the derivatives market. Within 24 hours, positions worth a total of 2.6 billion dollars were liquidated, with long positions accounting for 2.15 billion dollars of that. Bitcoin alone saw long position liquidations of 1.1 billion dollars. Trading volumes for Bitcoin and Ether reached their highest levels in over two years, which according to market observers often favors a short-term recovery. The Relative Strength Index signaled severely oversold conditions, a technical pattern that often attracts buyers.

Institutional Investors Capitalize on Price Decline

During the price crash, several institutional players emerged as buyers. Binance’s Secure Asset Fund for Users, an insurance fund established in July 2018 to protect user funds, acquired 3,600 Bitcoin worth 250 million dollars at a price of approximately 65,000 dollars per unit. The exchange had previously announced plans to convert reserves worth one billion dollars into Bitcoin within 30 days. Following an initial purchase of 1,315 Bitcoin for 100 million dollars, conversions worth 565 million dollars remain outstanding. Crypto hedge funds also significantly increased their market engagement: the aggregated market beta of all global crypto hedge funds reached its highest level in two years according to Bitwise data, indicating increased Bitcoin exposure.

Shares of crypto companies recorded double-digit gains on Friday after collapsing sharply the previous day. Strategy, which reported a quarterly loss of 14.2 billion dollars on Thursday evening, gained 14 percent but continues to trade at 122 dollars, still 22 percent below the start-of-year value. Galaxy Digital rose 15 percent, Bitcoin miner MARA Holdings rose 12 percent. During an analyst call, Michael Saylor of Strategy announced a Bitcoin security program to address threats from quantum computing. Some observers view this initiative as a signal that the crypto community takes quantum risks seriously and that prices may have reached their bottom.

Search Queries and Market Sentiment Signal Increased Interest

Google search volume for the term Bitcoin reached a peak of 100 points in the week starting February 1, the highest level in the past twelve months. The previous peak was 95 points in the week of November 16-23, when Bitcoin fell below the psychologically important 100,000 dollar mark for the first time in nearly six months. Analysts interpret the increase in search queries as an indicator of growing interest from retail investors, which typically increases during significant price movements. The Fear & Greed Index from Alternative.me fell further on Saturday to a value of 6, reaching levels of extreme fear last observed in June 2022. At the same time, the Coinbase premium recorded positive values for the first time since mid-January, suggesting that US investors are buying Bitcoin after the crash below 60,000 dollars.

From a technical perspective, traders are focusing on the support zone between 58,000 and 62,000 dollars, which coincides with the 200-week moving average. Analysts view this area as the last line of defense to avoid a deeper correction. Thursday’s crash with a daily loss of 10,000 dollars represented the largest volume candle in Bitcoin history, which some observers interpret as a sign of capitulation. Should the price stabilize from this level, market participants expect a significant upward impulse, similar to what has frequently been observed following comparable capitulation events in the past.