Bitcoin slid from $72,300 overnight, hitting an intraday low of $70,658 around 1 a.m., down roughly 2.3%. It recovered slightly to $70,923 by morning, still hovering below the $71,000 round number. Ethereum showed relative resilience, dropping from $2,134 to $2,055 before bouncing back to $2,073, a 2.9% daily decline, without following Bitcoin's deeper slide.
U.S. Stocks Weaken, Crypto Under Pressure
The pullback traces to a broad equity selloff. The Dow fell 1.61%, the S&P 500 dropped 0.57%, and the Nasdaq lost 0.26%. Tech stocks were mixed: Microsoft gained over 1%, Nvidia, Netflix, Amazon, and Intel edged higher; Meta fell more than 1%, while Apple, Tesla, and Alphabet slipped. Cybersecurity stocks were bright spots: Okta surged 11%, CrowdStrike rose over 4%, and Datadog gained over 3%. With crypto's correlation to equities remaining high, Bitcoin's ability to mount a standalone rally is limited until stocks stabilize.
CryptoQuant: Bull Score at 10, This Rally Is a Bear Market Bounce
Julio Moreno, research head at CryptoQuant, warned in a report that although Bitcoin bounced from near $73,000, it remains in a bear market. Fundamentals and technicals still point to a bearish environment, making the current move a bear market rally. The firm's Bitcoin Bull Score Index sits at just 10 out of 100, near historic lows. The index aggregates on-chain activity, investor profitability, spot demand, and liquidity—a score of 10 means almost all metrics are missing the conditions typical of a bull run.
Spot Demand Shrinkage Narrows but Stays Negative
Not all data is bleak. Moreno noted that Bitcoin spot demand shrinkage narrowed from around negative 136,000 BTC in early 2026 to about negative 25,000 BTC, indicating selling pressure has eased since early February. That explains the modest price recovery. Still, the conclusion remains cautious: demand is still negative, meaning net outflows persist. Buying power remains insufficient to fuel a sustained uptrend.
Three Scenarios Ahead: Rally Depends on Demand Turning Positive
CryptoQuant analysts outline possible paths: Bullish scenario: if spot demand flips positive in coming weeks and equities stabilize, Bitcoin could base between $71K and $73K and challenge $75K. Neutral scenario: if demand narrows but stays negative, BTC may range between $70K and $73K. Bearish scenario: if stocks slide further and macro conditions worsen, causing spot demand to expand its negative reading, the previously flagged $56K–$60K support zone becomes key. For Ethereum, its relative strength is notable, but if Bitcoin drops, the $2,055 support remains vulnerable. Until the Bull Score Index rises significantly from 10, caution on any bounce is warranted.