Bitcoin rebounded strongly after a brief weekend drop, climbing back above $70,000 during Tuesday morning trading in East Asia as easing oil prices and continued institutional inflows helped steady market sentiment.
The leading cryptocurrency had fallen to around $65,000 amid a wave of global risk aversion triggered by geopolitical tensions. The decline proved short-lived, however, with bitcoin stabilizing quickly before recovering as traders reassessed the broader market impact.
The rebound coincided with a pullback in crude oil prices and gains in U.S. equities. Earlier Monday, markets had turned cautious after disruptions in the Strait of Hormuz pushed key oil benchmarks — West Texas Intermediate and Brent Crude — above $100 per barrel for the first time in several years. Bitcoin initially moved lower alongside other risk-sensitive assets but soon stabilized in the mid-$60,000 range as markets digested the geopolitical developments.
Market maker Enflux said the cryptocurrency displayed notable resilience despite the shock in energy markets.
“Bitcoin briefly slipped below $66,000 during the initial risk-off move but quickly stabilized in the $66,000–$68,000 range,” the firm said in a note to CoinDesk. “Relative to equities and even some traditional hedges, bitcoin performed comparatively well.”
Institutional demand has continued to underpin the market. U.S. spot bitcoin exchange-traded funds recorded approximately $568 million in net inflows last week, following $787 million the previous week, according to figures from SoSoValue. The latest inflows pushed cumulative net investments across the funds beyond $55 billion.
Preliminary data from SoSoValue also indicated that Monday’s inflows totaled around $57 million, although not all ETF issuers had reported their figures at the time of publication.
Meanwhile, on-chain and derivatives data suggest market conditions are gradually stabilizing after the recent volatility, though analysts say stronger investor conviction has yet to return.
“Overall, conditions are stabilizing, with momentum, ETF demand, and profitability metrics improving modestly,” analysts at Glassnode wrote in a recent report. “However, capital flows remain relatively soft, speculative participation is still limited, and broader conviction has yet to fully return.”
Sentiment on prediction markets has also turned more optimistic following bitcoin’s recovery. On Polymarket, the probability of BTC reaching $75,000 in March rose to about 56% on Monday, up from roughly 34% a day earlier, reflecting how quickly trader expectations shifted as the cryptocurrency reclaimed the $70,000 level.
