Bitcoin rose back above the $70,000 level on Tuesday during East Asian trading hours, recovering from a weekend sell-off as geopolitical tensions and volatility in energy markets roiled global financial assets.
The largest cryptocurrency briefly fell toward $65,000 over the weekend as investors reacted to rising oil prices and escalating conflict in the Middle East.
Prices then stabilized in the mid-$60,000 range before rebounding as markets digested geopolitical developments.
The rally came as oil volatility eased after a surge sparked by fears of supply disruptions linked to the Strait of Hormuz.
Bitcoin initially fell along with risky assets during the shock but recovered relatively quickly compared to other markets.
Market participants said the cryptocurrency has shown resilience during this period of heightened uncertainty.
“Bitcoin fell below 66k during the initial risk-off wave but quickly stabilized in the 66k-68k range,” market maker Enflux said in a note to CoinDesk. “In relative terms, it has held up better than stocks and even some traditional hedges. »
Institutional demand remains supportive
Institutional investment flows have continued to support the digital asset despite recent volatility.
U.S.-listed spot Bitcoin exchange-traded funds saw approximately $568 million in net inflows last week, following $787 million the week before, according to SoSoValue data.
These inflows brought cumulative net investments across all ETF products above $55 billion.
According to CoinGlass data, BTC ETFs received an inflow of $167.1 million on Monday.
Blockchain analytics firm Glassnode reported that broader market conditions were stabilizing, although it noted that investor conviction remained limited.
“Overall, conditions are stabilizing, with modest improvement in momentum, ETF demand and profitability metrics,” Glassnode analysts wrote in a report.
“However, capital flows remain weak, speculative participation is limited and general conviction has not yet fully returned. »
Prediction markets also became more optimistic as Bitcoin rallied.
On Polymarket, the probability of Bitcoin reaching $75,000 in March increased to around 56% from around 34% the day before.
Broader crypto market joins rally
Bitcoin’s rebound came alongside a broader rally in digital assets after U.S. President Donald Trump said he expected the conflict with Iran to end soon.
“We are way ahead of our original schedule,” Trump said at a news conference in Florida.
The overall cryptocurrency market increased by approximately 2.7% over the past 24 hours to nearly $2.37 trillion, leading to approximately $353.19 million in liquidations, according to CoinGlass data.
Short positions accounted for approximately $195.33 million of the total.
Bitcoin itself rose 3.71% during the period, to around $69,655 after surpassing $70,000 earlier in the session.
Altcoins also participated in the bullish movement. Solana gained around 4.7% to nearly $86, while Ethereum rose 4.5% to return above $2,000.
Binance Coin rose around 4.1% to around $644, while Cardano climbed around 4% to $0.26. XRP advanced almost 3% to around $1.29.
Tron was the only cryptocurrency among the top ten by capitalization to decline, sliding about 1.3% to nearly $0.28.
Strategy adds to Bitcoin holdings
Corporate demand for Bitcoin also strengthened as Strategy (formerly known as MicroStrategy), the largest corporate holder of the cryptocurrency, revealed a large purchase.
The company acquired 17,994 Bitcoins between March 2 and March 8 for a total cost of $1.28 billion, according to a filing with financial markets authorities.
The average purchase price was $70,946 per token.
After the acquisition, Strategy’s total holdings increased to 738,731 Bitcoins purchased at an average price of $75,862.
Board President Michael Saylor reported the update in a social media post over the weekend.
« The Second Century Begins », a écrit Saylor.
Despite its continued buy strategy, Strategy has come under scrutiny due to its heavy exposure to Bitcoin.
Earlier this year, the company reported a fourth-quarter net loss of $12.4 billion, compared to a loss of $670.8 million a year earlier.
The latest results included an unrealized latent (fair value) loss of $17.4 billion on its digital asset holdings under accounting rules requiring companies to value cryptocurrencies at current market prices.
Still, the company has continued to expand its Bitcoin hoard as institutional interest in the digital asset grows.
