Bitcoin recovered above **$70,000** following a sharp drawdown earlier this month, as a cooler U.S. inflation report revived risk appetite across markets.

### What happened

- CoinDesk reported that Bitcoin rose roughly **5% in 24 hours**, while the broader **CoinDesk 20 index** also gained.

- The move followed a January **CPI print of 2.4% YoY**, slightly below forecasts.

- Rate-cut expectations nudged higher on prediction markets, providing a tailwind for risk assets.

### Key signals under the surface

Despite the bounce, several indicators point to lingering fragility:

- The **Crypto Fear & Greed Index** remained in **“extreme fear.”**

- Analysts cited approximately **$8.7B in realized bitcoin losses** over the prior week — a figure associated with capitulation-style events.

- Bitcoin treasury firms reportedly carried sizable **unrealized losses**, though the rebound reduced the aggregate drawdown.

### Why it matters

Macro-driven rallies can fade quickly if liquidity is thin and market participants treat strength as an exit opportunity. At the same time, large realized losses can mark a **transfer of supply from weaker to stronger hands**, which historically can precede stabilization — but often takes time.

### What to watch next

- Whether BTC can hold above $70K as weekend liquidity fades and the week’s data/calendar returns.

- Further changes in **rate-cut odds** and broader equity risk sentiment.

- Spot ETF flows and derivatives positioning for signs of renewed leverage.

_Source: CoinDesk_