Hassan Maishera
TL;DR
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BTC is now trading above $70k after a positive start to the week.
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The rally comes as the war volatility has faded in recent days.
BTC Trades Above $70k
The cryptocurrency market is having a positive start to the week as Bitcoin andother leading cryptocurrencies are in the green.
Bitcoin is currently trading above $70,500 on Tuesday, completing a rapid recovery from a weekend selloff that briefly dragged the largest digital asset down to around $65,000.
The rally comes as oil prices fell back below $100 and U.S. equity markets rallied. Furthermore, BTC’s surge came as markets turned risk off early Monday as disruptions in the Strait of Hormuz sent major oil benchmarks, WTI and Brent, above $100 for the first time in years.
BTC dipped sharply on Monday due to the oil shock, but quickly stabilized in the mid $60,000 range. It has now completed its recovery and is now trading above $70,000 per coin.
According to the market maker Enflux, Bitcoin has shown notable resilience despite the scale of the energy shock.
In a note to CoinDesk, the firm said,
“Bitcoin dipped below 66k during the initial risk-off wave, yet quickly stabilized back in the 66k to 68k range. In relative terms, it held up better than equities and even some traditional hedges.”
The rally also comes as institutional investors continue to accumulate spot Bitcoin ETFs. According to SoSoValue, U.S. spot bitcoin ETFs drew about $568 million in net inflows last week, following $787 million the week prior.
SoSoValue added that Monday’s U.S. inflows were about $57 million, though not all issuers had reported at the time of publication.
Onchain and derivatives indicators also suggest that the market is stabilizing following the recent volatility. However, a bullish conviction is yet to fully return to the market.
