Bitcoin climbed back above $71,000 on Thursday after a sharp sell-off earlier in the day briefly dragged prices below the $70,000 mark, reflecting a tentative stabilization in global markets.
The move came as a broader decline in technology stocks showed signs of fatigue. Futures linked to the Nasdaq 100 rose after two tough sessions that erased the index’s gains for the year, while European stocks stabilized and Asian markets pared losses.
Bitcoin had fallen as much as 7% in the previous 24 hours as investors reduced risk in assets linked to growth and leverage. The drop coincided with renewed pressure on precious metals, where silver plunged as much as 17%, extending a brutal reversal after last month’s record rally.
Gold also fell, underscoring how quickly speculative trading in the markets has been dismantled.
In crypto, the bounce above $71,000 looks more like short covering than a renewed rush of buyers. Trading volumes remain high, but demand in the spot market has declined, according to analysts.
Stablecoin balances on exchanges have also been falling, suggesting fresh capital is sitting on the sidelines rather than aggressively intervening in declines.
Macroeconomic uncertainty continues to weigh on confidence. Investors are recalibrating expectations about 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 has warned that without a clear catalyst, bitcoin could still return to lower levels if sales resume.
Others see most of the decline already behind the market, with estimates clustering around a potential bottom in the low to mid-$60,000 range.
