Bitcoin rallied back above $71,000 on Thursday after a sharp sell-off earlier in the day briefly sent prices slipping below the $70,000 mark, reflecting an attempt to stabilize in global markets.
The move comes as a broader rout in tech stocks shows signs of fatigue. Futures linked to the Nasdaq 100 edged higher after two bruising sessions that erased the index’s gains for the year, while European stocks stabilized and Asian markets pared losses.
Bitcoin fell as much as 7% in the previous 24 hours as investors reduced risk on assets linked to growth and leverage. The drop coincided with renewed pressure on precious metals, where silver plunged as much as 17%, extending a sharp reversal after last month’s record rally.
Gold also fell, highlighting the speed with which speculative market trades were unwound.
In crypto, the bounce above $71,000 looks more like overdraft covering than a fresh rush of buyers. Trading volumes remain high, but demand in the spot market has weakened, analysts say.
Stablecoin balances on exchanges have also declined, suggesting new capital is staying on the sidelines rather than aggressively intervening on declines.
Macroeconomic uncertainty continues to weigh on sentiment. Investors are recalibrating their expectations for U.S. interest rates amid speculation about the Federal Reserve’s leadership and the risk of a stronger dollar, which typically puts pressure on assets like bitcoin that thrive on easy liquidity.
Some companies remain cautious. Galaxy Digital warned that, without a clear catalyst, Bitcoin could still return to lower levels if sales resume.
Others see most of the decline as already behind the market, with estimates gathering around a potential bottom of between $60,000 and below.
