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- Nidhi Kolhapur
Nidhi Kolhapur
Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
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Sohrab KhawasSohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.
- Feb 07, 2026 06:56 UTC
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Crypto Market Today Rebounds as Bitcoin, XRP Rally After Panic Sell-Off
Bitcoin rebounds above $71K as altcoins surge; XRP gains amid whale buying, but market remains fragile with trend reversal uncertain.
Crypto sees short-term recovery after panic sell-off; Bitcoin, Ethereum, and XRP bounce, yet broader market risks further declines.
The crypto market showed early signs of recovery today after a sharp sell-off, with Bitcoin climbing back above the $71,000 level. The rebound followed a wave of panic selling that pushed market sentiment to an extreme level of fear, leaving investors unsure whether this move marks a real recovery or just a short-term bounce before another decline.
The Crypto Fear & Greed Index dropped to 5, one of its lowest levels ever, indicating the extent of negative sentiment. Similar levels were last seen during major market crashes, including the COVID crash and the collapse of FTX, highlighting the scale of fear that recently gripped the market.
Bitcoin and Altcoins Recover as Oversold Conditions Ease
Bitcoin briefly dipped close to the $60,000 level before finding support and bouncing back. At the same time, major altcoins also posted strong short-term gains. Ethereum rose nearly 9%, Solana jumped over 14%, and XRP surged more than 20% at its peak during the rebound.
Despite the recovery, prices remain well below recent highs, showing that the broader market is still fragile. Analysts say the bounce is likely driven by traders closing short positions and fresh liquidity entering the market, rather than strong long-term buying confidence.
Tether has minted nearly $2 billion in USDT over the past few days, which may have helped support prices in the short term by adding liquidity to the market.
XRP Price Shows Strong Recovery Signs Amid Whale Buying
XRP stood out during the rebound, posting sharper gains compared to the broader market. According to Santiment data, XRP price recovered from below $1.15 to above $1.50 in less than a day.
The rally was supported by heavy whale activity, with over 1,389 transactions worth more than $100,000 recorded, the highest level in four months. At the same time, the number of active XRP Ledger addresses surged to a six-month high, suggesting renewed interest during the dip.
These signals point to strong buying during panic conditions, often seen near short-term market bottoms.
Bitcoin Relief Rally or More Downside Still Possible?
Bitcoin has not yet confirmed a full trend reversal. Buy signals are appearing on shorter timeframes, but a stronger confirmation would require a weekly signal, which is still missing.
Past market cycles show that initial rebounds are often followed by weeks of choppy price action or even another leg lower. Similar setups in recent months resulted in breakdowns after brief optimism.
Bitcoin could move toward the $75,000–$80,000 range in the short term. However, a sustained move above $80,000 is seen as necessary before confidence in a new bull phase can return.
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FAQs
The crypto market is up due to Bitcoin and altcoin rebounds, panic buying easing, and fresh liquidity entering the market.
Ethereum rose 9%, Solana jumped 14%, and XRP surged over 20%, showing strong short-term gains amid oversold conditions.
Short-term rebounds are possible, but trend reversal is unconfirmed; Bitcoin must sustain above $80K to signal a new bull phase.
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