Bitcoin made a remarkable recovery, surging back above the $70,000 mark after a notable dip to approximately $65,000 over the weekend. The price resurgence unfolded by Tuesday morning in Asian trading hours, following a turbulent period triggered by a spike in oil prices due to disruptions in the Strait of Hormuz, which sent both WTI and Brent crude soaring past the $100 mark for the first time in years.
The shift in Bitcoin’s fortune coincided with a drop in oil prices from nearly $120 to around $90 a barrel, alleviating concerns over a potential surge in global inflation. This easing of pressure allowed broader market sentiment to improve significantly, paving the way for Bitcoin’s rebound.
In a significant political statement, U.S. President Donald Trump remarked that the current conflict involving Iran could see an end soon. While he cautioned that a resolution was not imminent, he warned that the U.S. would retaliate “20 times harder” should Iran make moves to shut down the strategically vital Strait of Hormuz.
The retreat of oil prices back to near $90 per barrel also had a palpable positive impact on stocks. Asian markets began to recover from previous losses, and Wall Street reported robust gains overnight. Bitcoin mirrored these developments, following the uptick in risk sentiment across global markets.
ETF Inflows Continue to Rise
Despite the recent market volatility, U.S. spot Bitcoin Exchange-Traded Funds (ETFs) continued to attract a steady inflow of capital. Last week alone saw net inflows reaching approximately $568 million, following a robust $787 million in the week before, as reported by SoSoValue data.
As of March 9, U.S. spot Bitcoin ETFs recorded significant net inflows totaling $167 million, with BlackRock’s IBIT registering the largest single-day influx of $109 million. Cumulatively, total net inflows across all spot Bitcoin ETF products now exceed a staggering $55 billion, showcasing a strong ongoing demand from investors.
Market maker Enflux noted that during the initial sell-off, Bitcoin demonstrated resilience, faring better than equities and traditional hedges. BTC momentarily dipped below $66,000 but managed to stabilize in the $66,000 to $68,000 range, reflecting a robust underlying demand.
Rising Trader Sentiment and Price Predictions
Traders on prediction market Polymarket exhibited a marked shift in sentiment, with the odds of Bitcoin reaching $75,000 by March jumping from 34% to 56% within a day as BTC reclaimed the $70,000 level. Analysts from Glassnode highlighted that improving momentum, ETF demand, and profitability metrics indicate a potential upward trend, although they cautioned that speculative participation remains limited.
Technically, Bitcoin is encountering resistance levels around $69,250 and $69,600. A sustained push above $69,600 could potentially propel the price to $70,500 and subsequently to $72,000, while key support levels are identified at $68,000 and $67,500, with the main floor resting around $65,500.
Market participants are tuning in closely to the upcoming U.S. January Consumer Price Index (CPI) report set to be released on Wednesday, followed by the February Personal Consumption Expenditures (PCE) index due Thursday, as these data points could further influence Bitcoin’s trajectory in the short term.
