After weeks of heavy selling pressure that pushed
$BTC close to the $60,000 level, the world’s largest cryptocurrency has staged a strong comeback, reclaiming the $70,000 mark. The rebound follows encouraging U.S. inflation data that eased market concerns and renewed investor interest in riskier assets.
As of Saturday,
$BTC was trading near $70,200, reflecting a gain of about 2% over the past 24 hours. Trading activity remained elevated, with daily volume hovering around $43 billion. The recovery places Bitcoin just shy of its recent weekly peak of roughly $70,400 and lifts its total market value back above $1.4 trillion.
Inflation Data Boosts Market Sentiment
The latest upward move came after January’s Consumer Price Index report showed annual inflation rising 2.4%, slightly below expectations of 2.5%. The softer-than-anticipated figure strengthened speculation that the Federal Reserve could begin cutting interest rates sooner than previously projected.
Lower interest rate expectations often provide support for higher-risk assets such as cryptocurrencies, as investors become more comfortable moving capital into growth-oriented markets.
Betting markets reflected this shift in outlook. Traders increased the probability of an April rate cut, signaling a noticeable improvement in sentiment over the course of the week.
Bitcoin’s Rebound Lifts Crypto Stocks
Bitcoin’s recovery also had a positive spillover effect on companies tied closely to the digital asset industry.
Shares of Coinbase rose sharply, jumping 18% on Friday as investors renewed exposure to crypto-related equities. The rally came despite recent financial challenges, including a substantial quarterly loss linked to declining trading activity.
Similarly, MicroStrategy climbed 10%, reflecting its continued correlation with Bitcoin’s price movements. The company recently disclosed the purchase of more than 1,100 additional BTC and reiterated its long-term strategy of holding Bitcoin as a treasury reserve asset. However, it also reported a significant quarterly loss largely driven by mark-to-market adjustments on its crypto holdings — highlighting the financial volatility tied to its aggressive Bitcoin accumulation approach.
A Volatile Road to Recovery
Bitcoin’s recent rebound comes after a turbulent few months. The asset has fallen dramatically from its October peak above $120,000, sliding into the mid-$60,000 range amid a prolonged correction.
The decline accelerated in early February when Bitcoin dropped below the key psychological level of $70,000, triggering heightened selling pressure and widespread investor concern.
According to research firm K33, the sharp move toward $60,000 may have represented a short-term bottom. Analysts pointed to indicators such as heavy trading volumes, negative funding rates, options market positioning, and ETF outflows as signs of capitulation — conditions that sometimes precede a recovery.
Caution Still Lingers
Despite the recent bounce, broader market sentiment remains fragile. The Crypto Fear & Greed Index continues to signal “extreme fear,” a level previously seen during the 2022 bear market and major industry collapses.
While Bitcoin’s move back above $70,000 marks a notable recovery, the market remains sensitive to macroeconomic developments and investor confidence trends in the weeks ahead.
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