Bitcoin price: Is BTC reaching ‘fear fatigue’?

The reintroduction of global tariffs by the Trump administration, along with other geopolitical headlines, initially paralyzed the market, but the follow-through selling has slowed.

Although BTC remains roughly 50% off its $126,000 peak, the mid-week rally toward the $70,000 threshold has thrown yet another challenge to the bearish inertia that has defined February 2026. 

Given the ongoing ‘tariff-and-tug-of-war’ macro backdrop, some analysts have opined that the market is not ‘out of the woods’. However, BTC’s 6% rally suggests that the market’s weeks-long stretch of ‘extreme fear’ may have hit a point of exhaustion.

Behind Bitcoin’s rally to $69K 

The surge towards $70,000 can be attributed to a combination of refreshed institutional confidence and positive glimpses out of the tech and finance headlines. 

After 22 days of being trapped in an ‘extreme fear’ basement, the market had become structurally ‘short-heavy’. When spot BTC ETFs led a half-billion-dollar inflow day, it provided a spark that ignited the over-leveraged downside bets.

This rally lends weight to the ‘fear fatigue’ thesis; historically, when a market stops responding to bad news — such as the persistent global tariff uncertainty — it indicates the ‘marginal seller’ is exhausted.

The AI-crypto correlation

NVIDIA’s Q4 2025 results indicated a staggering 73% year-over-year revenue growth, surpassing Wall Street's ‘sky-high’ expectations. As the cornerstone of the AI industrial revolution, NVIDIA's performance acted as a systemic reassurance, dragging the broader risk market and high-beta assets out of defensive positions.

The ‘10 AM dump’ vanishes

Equally influential is the legal pressure mounting against quant giant Jane Street. Following a lawsuit filed by the Terraform Labs bankruptcy administrator alleging market manipulation during the 2022 collapse, reports suggest the firm’s automated desks were ordered to pause certain strategies. Market participants noted that the recurring ‘10 AM price slam’ that plagued BTC for weeks failed to materialize on Wednesday, allowing for a natural, unsuppressed recovery.

Outlook: The price of apathy and Bitcoin’s $70K battle

The current consolidation and mid-week rally may be the market’s response that ‘maximum pessimism’ is already here.

Despite the rally, $70,000 remains a formidable ceiling for BTC. This level serves as the line that may separate a ‘dead cat bounce’ from a genuine structural shift.

• The bullish view: A decisive close above $70,000 would validate the $60K to $62K floor as a definitive cycle bottom, potentially opening a path toward the $72K to $74K resistance band.

The bearish caution: Without a formal de-escalation in trade tensions, this move risks being a ‘liquidity hunt’. The $60K zone remains the ultimate anchor; a break here would refocus targets on the $49K to $53K demand zone.

Important information: ​​This informational content is written by Crypto.com and should not be considered as an investment recommendation or advice. Trading cryptocurrencies carries risks, such as price volatility and market risks. Before deciding to trade cryptocurrencies, consider your risk appetite.  All forecasting methods, scenarios, and examples are illustrative and subject to market uncertainty. 

Past performance offers context but does not ensure future results. Investment outcomes are subject to market volatility, economic changes, and other unpredictable variables.