Market update: Why Bitcoin is testing nerves right now On 6 February, the price temporarily fell to close to USD 60,000 before a technical countermovement set in. Bitcoin is currently trading again at around USD 70,000. The key point: this phase is driven less by "narratives" and more by liquidity and risk reduction. This also explains the prevailing market sentiment. The Crypto Fear & Greed Index temporarily slipped into the "Extreme Fear" zone. What are the drivers behind the major correction, and what should investors focus on in the near term? What factors are driving the major correction?Macro trumps crypto: Crypto is currently behaving clearly as a risk asset. When risk is reduced, Bitcoin is disproportionately affected. This is nothing new, but it has become very visible again in recent weeks.Fed signal via leadership discussion: Kevin Warsh’s candidacy for the position of the next Fed Chair has reshuffled expectations. Warsh is considered rather hawkish. In an environment where the market is hoping for rate cuts, such a signal alone is sufficient to accelerate de-risking.Japan is shifting the global interest rate picture: Outside the US, liquidity is also being repriced. The Bank of Japan has slightly raised its key interest rate. This is a clear sign that the era of ultra-loose monetary policy continues to recede globally. For volatile markets, this represents a headwind.Geopolitics as a volatility amplifier: Geopolitical tensions heighten uncertainty. In such phases, capital often shifts into "traditional safe havens" such as gold, while highly volatile markets initially face reduced demand.US spot Bitcoin ETFs remain a key driver: The repeated net outflows are notable, sending a clear signal. Investors are securing liquidity or reallocating. A striking day was 29 January, with net outflows of approximately USD 817.9 million.Deleveraging: when mechanics dominate the market. Part of this movement is "classic deleveraging": leveraged positions are forcibly liquidated in a short period. This leads to accelerated downward impulses, even when the selling is not emotional or panic-driven. In such moments, what matters is not whether someone is "convinced", but whether they are forced to sell. How we assess the situationThis downward phase is uncomfortable, but it is not automatically a structural problem. Volatility is part of the Bitcoin cycle. There are phases in which risk is deliberately and consistently reduced. In precisely such moments, liquidity trumps any narrative: interest rate, currency and risk impulses dominate, regardless of how compelling the long-term narrative sounds. At the same time, the market is testing investor conviction, particularly among participants who have publicly positioned themselves as long-term buyers. The fact that Strategy (formerly MicroStrategy) purchased Bitcoin worth approximately USD 2.13 billion in January shows that individual participants are taking advantage of lower prices. However, broad and stable demand is not yet guaranteed. What we are watching nowPrice stabilisation: A recovery after sharp sell-offs is normal. The key question is whether the market forms higher lows and whether spot buyers become active again.Are ETF flows turning? If net outflows flatten or inflows resume, market mechanics ease immediately.Leverage and positioning: Is the market returning to balance? After a leverage reset, time is needed. Normalised funding rates and declining forced liquidations are often better signals than short-term price jumps.Macro: is risk being rebuilt? As long as the environment remains "risk-off", every recovery will be more fragile. Only when risk is being rebuilt does Bitcoin gain tailwind. ConclusionThe market is not "broken". But it is being honest right now: it does not reward hope, but discipline. Anyone investing in Bitcoin must be able to withstand such phases or choose a position size that ensures volatility does not become a source of stress. Important legal informationThis publication is intended for information and marketing purposes only, and does not constitute investment advice or a specific individual investment recommendation. It is not a sales prospectus and does not constitute a request, an offer, or a recommendation to buy or sell investment instruments or investment services, or to engage in any other transaction. Maerki Baumann & Co. AG does not provide legal or tax advice. Investors are therefore advised to obtain independent legal or tax advice concerning the suitability of such investments, since their tax treatment depends on the personal circumstances of the investor in question and is subject to change at any time. Maerki Baumann & Co. 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