Bitcoin rebounded sharply after briefly sliding toward $65,000 during the weekend, reclaiming the $70,000 level early Tuesday in East Asia trading as oil prices eased and institutional demand continued to support the market.
The recovery follows a short-lived wave of risk aversion that rattled global markets. Bitcoin had fallen alongside other risk assets after geopolitical tensions pushed energy prices higher, but the cryptocurrency quickly regained footing as traders reassessed the broader impact of the shock.
The rebound coincided with a pullback in crude oil and a rally across U.S. equity markets. Earlier Monday, markets shifted into risk-off mode after disruptions in the Strait of Hormuz drove key oil benchmarks — West Texas Intermediate and Brent Crude — above $100 per barrel for the first time in several years. Bitcoin initially dropped with equities during the initial reaction but soon stabilized in the mid-$60,000 range as investors absorbed the geopolitical developments.
Market maker Enflux noted that the digital asset showed resilience despite the scale of the energy market shock.
“Bitcoin briefly slipped below $66,000 during the initial risk-off move but quickly stabilized in the $66,000 to $68,000 range,” the firm said in a note to CoinDesk. “Relative to equities and even some traditional hedges, the asset held up comparatively well.”
Institutional demand has also continued to underpin the market. U.S. spot bitcoin exchange-traded funds recorded about $568 million in net inflows last week, following $787 million the previous week, according to data from SoSoValue. The latest figures push cumulative net inflows across the products above $55 billion.
Preliminary figures from SoSoValue suggest Monday’s inflows totaled roughly $57 million, although not all ETF issuers had reported at the time of publication.
Meanwhile, on-chain and derivatives data suggest market conditions are gradually stabilizing following the recent volatility, though investor confidence remains somewhat cautious.
“Overall, conditions are stabilizing, with momentum, ETF demand, and profitability metrics improving modestly,” analysts at Glassnode wrote in a recent report. “However, capital inflows remain relatively soft, speculative activity is limited, and broader market conviction has yet to fully return.”
Sentiment in prediction markets has also turned more optimistic as bitcoin regained the $70,000 level. On Polymarket, the probability of BTC reaching $75,000 in March climbed to around 56% on Monday, up from roughly 34% a day earlier, reflecting how quickly trader expectations shifted following the rebound.
