After a global market sell-off on Thursday, the cryptocurrency market staged a dramatic rebound on Friday (February 6). Leading the charge, Bitcoin surged by as much as 13%, reaching a high of $71,469, nearly fully recovering all the losses from the previous day's crash. Ethereum also rebounded strongly, with an intraday increase of over 11%, regaining levels above $2,067. This rebound is widely interpreted by the market as a "relief rally after exhaustion of selling." Analysts pointed out that Bitcoin showed strong support near $60,000, while extremely low market liquidity meant that small buy orders could cause significant price fluctuations. Other major tokens also followed the rally, with XRP rising over 30%. Nevertheless, the market's overall decline this week remains substantial, and sentiment has not fundamentally improved. Thursday’s plunge was essentially a fierce deleveraging process. Data shows that approximately $1.7 billion was liquidated across the entire network within 24 hours on Thursday, with about $1.5 billion in long positions and only around $200 million in shorts. This clearly indicates that the core driver of the crash was the chain reaction of forced liquidations of highly leveraged long positions.

The most affected by this deleveraging are large institutions. For example, the well-known trading firm “Trend Research” continuously transferred ETH to exchanges during the crash to repay loans, having moved out over 188,000 ETH (about $427 million). After significant deleveraging, their debt was reduced from a high level to approximately $25 million, and the liquidation price was significantly lowered. Market analysis suggests that this large-scale, forced deleveraging, although painful, has alleviated the burden for the market’s subsequent healthy rebound.