Bitcoin pushed back above $71,000 on Thursday after a sharp early selloff briefly sent prices below the $70,000 threshold, as broader financial markets showed early signs of stabilization.
The rebound coincided with a pause in the recent rout across technology stocks. Futures linked to the Nasdaq 100 ticked higher following two punishing sessions that erased the index’s gains for the year, while European equities steadied and Asian markets trimmed earlier losses.
Over the prior 24 hours, bitcoin had fallen as much as 7% as investors pulled back from riskier assets tied to growth and leverage. The move unfolded alongside renewed weakness in precious metals, where silver plunged as much as 17%, extending a sharp reversal from last month’s record rally. Gold also slipped, underscoring the rapid unwinding of speculative positions across markets.
In crypto markets, analysts say the move back above $71,000 appears to have been driven largely by short covering rather than a wave of new buying. Trading volumes remain elevated, but spot market demand has softened, pointing to limited follow-through behind the rebound.
Further reinforcing that view, stablecoin balances on exchanges have continued to trend lower, suggesting fresh capital remains on the sidelines instead of aggressively buying the dip.
Macro uncertainty continues to hang over markets. Investors are reassessing expectations around US interest rates amid speculation over Federal Reserve leadership and the potential for a stronger dollar — conditions that typically weigh on assets like bitcoin that benefit from easy liquidity.
Some firms remain cautious. Galaxy Digital has warned that without a clear catalyst, bitcoin could still test lower levels if selling pressure resumes.
Others argue much of the drawdown may already be complete, with some estimates placing a potential bottom in the low-to-mid $60,000 range.
