Bitcoin has rebounded to approximately $68,600 following a midweek sell-off, stabilizing near a key technical support level. The recovery coincided with modest gains in U.S. stocks. Analysts point to significant outflows from U.S. spot Bitcoin ETFs, led by BlackRock‘s IBIT, as a market-shaking factor. BitMEX co-founder Arthur Hayes attributed the prior price drop to dealer hedging related to structured financial products tied to IBIT.
Bitcoin and the broader cryptocurrency market have recovered cautiously after a steep midweek decline. Prices have steadied around crucial technical support zones.
Major cryptocurrencies, including Ethereum and Solana, have followed Bitcoin’s upward move. Data from CoinMarketCap shows this indicates improving sentiment across digital assets. The rebound also aligned with a slight uptick in U.S. equity markets.
On February 7, 2026, BitMEX co-founder Arthur Hayes provided a structural reason for the decline. He explained it as dealer hedging related to structured financial instruments connected to the SEC-regulated iShares Bitcoin Trust offered by BlackRock.
Hayes stated that as IBIT shares fell rapidly, banks and market makers had to rebalance their exposure. He said, “As the game changes, u must as well.”
U.S. spot Bitcoin ETFs saw approximately $1.2 billion in outflows over three trading days. BlackRock‘s IBIT experienced the largest outflows among these funds.
Tracker data shows IBIT’s price dropped 13% in a single day. This was one of its largest declines since launch, with around $10 billion in trading volume.
Market observers see this surge as hedging and repositioning activity. The events demonstrate how ETF flows increasingly impact Bitcoin’s near-term price movements and market liquidity.
