Bitcoin climbed back above $71,000 on Thursday after an earlier wave of selling briefly pulled prices below the $70,000 threshold, as signs of stability began to emerge across global markets.
The rebound coincided with a pause in the selloff that has gripped technology stocks. Nasdaq 100 futures edged higher following two punishing sessions that erased the index’s gains for the year, while European equities steadied and Asian markets pared earlier losses.
Over the past 24 hours, bitcoin had dropped as much as 7% as investors pared exposure to risk assets tied to growth and leverage. The decline unfolded alongside renewed weakness in precious metals, where silver plunged as much as 17%, extending a sharp reversal from last month’s record highs. Gold also slipped, underscoring how quickly speculative trades across markets have been unwound.
Within crypto, analysts say the move back above $71,000 appears driven largely by short covering rather than fresh inflows. Trading volumes remain elevated, but spot demand has thinned, suggesting limited conviction behind the rebound.
That view is reinforced by stablecoin balances on exchanges, which have continued to drift lower, signaling that new capital is staying on the sidelines instead of aggressively buying the dip.
Macro uncertainty continues to weigh on sentiment. Investors are recalibrating expectations around US interest rates amid speculation over Federal Reserve leadership and the risk of a stronger dollar — dynamics that typically pressure assets like bitcoin, which tend to benefit from abundant liquidity.
Some firms remain cautious. Galaxy Digital has warned that, without a clear catalyst, bitcoin could still revisit lower levels if selling resumes.
Others believe much of the drawdown may already be behind the market, with some estimates clustering around a potential bottom in the low-to-mid $60,000 range.
