Bitcoin surged back above $70,000 on Tuesday morning East Asia time, completing a rapid recovery from a weekend sell-off that briefly dragged the largest digital asset to around $65,000.
The bullish move came as volatility in energy markets eased after crude oil surged amid fears of disruptions in the Strait of Hormuz. Bitcoin fell alongside risk assets during the initial shock, but quickly stabilized in the mid-$60,000 range (given Wall Street’s isolation from the energy crisis) before rising again as markets digested the geopolitical headlines.
Market maker Enflux said the cryptocurrency showed remarkable resilience despite the scale of the energy shock.
“Bitcoin fell below 66k during the initial wave of risk aversion, but quickly stabilized again in the 66k to 68k range,” the firm said in a note to CoinDesk. “Relatively speaking, it held up better than stocks and even some traditional hedges.”
Institutional demand has also remained favorable.
US spot bitcoin ETFs attracted around $568 million in net inflows last week, following $787 million the previous week, according to data from SoSoValue, pushing cumulative net inflows across all products above $55 billion.
Early data from SoSoValue shows that US inflows on Monday amounted to about $57 million, although not all issuers had reported 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 momentum, ETF demand, and profitability indicators improving modestly,” 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 rallied.
On Polymarket, the odds of BTC reaching $75,000 in March rose to around 56% on Monday from around 34% the previous day, highlighting how quickly traders’ expectations changed as the cryptocurrency reclaimed the $70,000 level.
