Nasdaq Surges 2% as Traditional Markets Defy Extreme Crypto Fear

VADODARA, February 6, 2026 — The Nasdaq Composite Index surged 2.03% in intraday trading, according to real-time market data. This daily crypto analysis reveals a stark divergence: traditional equities rally while cryptocurrency markets grapple with Extreme Fear sentiment. The S&P 500 gained 1.71%, and the Dow Jones Industrial Average climbed 2.15%. Consequently, Bitcoin held at $70,645 despite a 6.77% 24-hour drop.

Investigation: Equity Rally Amid Crypto Contraction

Market data confirms a sharp intraday move. The Nasdaq Composite extended gains to 2.03%. The S&P 500 rose 1.71%. The Dow Jones Industrial Average increased 2.15%. This rally occurred during regular trading hours on February 6, 2026. Underlying this trend, institutional flows likely drove the momentum. In contrast, the Crypto Fear & Greed Index registered Extreme Fear at 9/100. Bitcoin's price action defied this sentiment by holding above $70,000.

Market Context & Historical Precedent

Historically, equity rallies often precede crypto liquidity rotations. The 2021 cycle saw Nasdaq gains fuel Bitcoin's ascent to $69,000. Market structure suggests current divergence may indicate institutional capital seeking yield. Traditional markets absorb liquidity from Federal Reserve policies. Cryptocurrency markets then experience delayed inflows. This pattern mirrors late 2020 behavior. , extreme fear in crypto frequently marks local bottoms. The recent resilience of Bitcoin above $67,000 supports this thesis.

Related Developments

• US investors accumulated Bitcoin above $60k as Coinbase premium turned positive.
• $145M in futures liquidations signaled extreme fear capitulation events.
• Bitcoin faced a 52% crash to $60k earlier in 2026, testing long-term support.

Technical Architecture & Price Action

Bitcoin's current price sits at $70,645. The 24-hour decline of 6.77% created a Fair Value Gap (FVG) near $72,000. This FVG acts as immediate resistance. Support clusters at the Fibonacci 0.618 retracement level of $67,200. This level aligns with the 200-day moving average. On-chain data indicates strong holder accumulation at this zone. The Relative Strength Index (RSI) reads 38, suggesting oversold conditions. Volume profile shows thinning sell-side liquidity. Market structure suggests a potential reversal if equities sustain momentum.

By The Numbers

Why It Matters

Equity strength signals broader risk appetite. Institutional capital rotates from bonds to equities. Cryptocurrencies often follow with a lag. The Federal Reserve's current monetary policy, detailed on FederalReserve.gov, influences this flow. Extreme fear in crypto typically precedes institutional accumulation. Market analysts note this divergence may compress volatility. Retail sentiment remains negative, but on-chain metrics show accumulation. This creates a liquidity grab opportunity for large players.

Expert Commentary

"The Nasdaq rally reflects macro liquidity seeking yield. Cryptocurrency markets exhibit classic fear capitulation. Historical cycles suggest this divergence often resolves with crypto catching up. Key levels like Bitcoin's $67,200 Fibonacci support will determine the next move." — CoinMarketBuzz Intelligence Desk

Market Outlook & Price Scenarios

Market structure suggests two primary scenarios. First, equities sustain gains, pulling crypto out of fear. Second, crypto decouples further, testing lower supports. The 12-month outlook hinges on Federal Reserve policy and institutional adoption.

• Bullish Invalidation Level: $72,500. A break above this resistance confirms trend reversal and closes the Fair Value Gap.
• Bearish Invalidation Level: $67,200. A loss of this Fibonacci 0.618 support invalidates the current structure and targets $60,000.

Institutional outlook for the next 5 years remains positive. Regulatory clarity and ETF flows drive long-term growth. Short-term volatility presents accumulation opportunities.