Bitcoin pushed back above $70,000 on Tuesday morning East Asian time, completing a rapid recovery after a weekend sell-off that briefly sent the biggest digital asset down to around $65,000.
The rise came as volatility in energy markets eased after crude oil prices rose amid fears of disruptions in the Strait of Hormuz. Bitcoin plunged alongside risk assets during the initial shock, but quickly stabilized around the mid-$60,000 range – given Wall Street’s isolation over the energy crisis – before rallying as markets digested the geopolitical headlines.
Market maker Enflux said the cryptocurrency has shown notable resilience despite the scale of the energy shock.
“Bitcoin fell below 66,000 during the initial wave of risk aversion, but quickly stabilized in the 66,000-68,000 range,” the company said in a note to CoinDesk. “In relative terms, it has held up better than stocks and even some traditional hedges.”
Institutional demand also remained favorable.
According to data from SoSoValue, U.S. spot bitcoin ETFs generated approximately $568 million in net inflows last week, following $787 million the week before, pushing cumulative net inflows across the products above $55 billion.
Early data from SoSoValue shows that U.S. inflows on Monday totaled about $57 million, although not all issuers had reported this at the time of publication.
Onchain and derivatives indicators suggest the market is stabilizing after recent volatility, although conviction has not yet fully returned.
“Overall, conditions are stabilizing, with slight improvement in momentum, ETF demand and profitability indicators,” Glassnode analysts wrote in a recent report. “However, capital flows remain weak, speculative participation is limited and broader conviction has not yet fully returned. »
Prediction markets also became more bullish as bitcoin rebounded.
On Polymarket, the odds of BTC hitting $75,000 in March jumped to around 56% on Monday, up from around 34% a day earlier, highlighting how quickly traders’ expectations changed as the cryptocurrency reclaimed the $70,000 level.
