BTC price sets new February high as Bitcoin buyers target faraway $25K

Bitcoin (BTC) spiked past $43,500 into the Feb. 5 Wall Street open as United States markets reacted to Chinese stock turmoil.

BTC/USD 1-hour chart. Source: TradingView

China’s losses spark talk of recession

Data from Cointelegraph Markets Pro and TradingView showed local highs of $43,515 on Bitstamp — a new February BTC price record.

Bitcoin had heated up into the week’s first Asia trading session as China’s CSI 1000 index shed 8% in a single day, prompting authorities to impose further controls on short selling.

Trading resource The Kobeissi Letter queried whether the country might be in recession, noting a “disconnect” between large and small-cap stocks.

“China’s market has officially lost $7 TRILLION in value over the last 3 years,” part of a reaction on X (formerly Twitter) acknowledged.

Even as China has vowed to stabilize its markets, investors are worried.

Many believe that China will focus primarily on large cap stocks.

Hence why there’s a huge disconnect between large and small caps now.

— The Kobeissi Letter (@KobeissiLetter) February 5, 2024

Bitcoin volatility was also aided by a marked increase in open interest, this amounting to $775 million, per data uploaded to X from J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant.

Outflows from the Grayscale Bitcoin Trust (GBTC), meanwhile, came out lower than in previous days at around 2,600 BTC, continuing an encouraging downtrend.

Today’s #Bitcoin Sent to out by $GBTC/Grayscale comes out to be ~2.6K $BTC or ~115$M worth.

Another big decrease from the most recent trading day on Friday.

Wanted to wait a bit for the next block to make sure it was indeed just this low amount. It seems like it is indeed just… https://t.co/Ul8pcB6e5B pic.twitter.com/1rOuf78oND

— Daan Crypto Trades (@DaanCrypto) February 5, 2024