Bitcoin has rebounded towards the $70,000 mark, trading at $68,000. Market maker Enflux suggests this surge is largely due to short-covering rather than conviction, as traders had adopted a bearish stance amid Middle East tensions. Enflux noted the market is not pricing either catastrophe or resolution to the conflict.
Crypto assets often react swiftly to geopolitical events, serving as a pressure valve during uncertainty. Institutional support remains strong, with Bitcoin ETFs attracting approximately $1.45 billion in net inflows over the past five trading days.
On-chain and derivatives data indicate a stabilizing market, though strong conviction is yet to return. Momentum indicators are improving, but still below neutral levels. Spot market conditions show balanced buying and selling, easing earlier aggressive selling.
However, derivatives markets remain cautious, with sellers dominating buyers in futures trading. Prediction markets reflect this tempered sentiment, with probabilities for significant price drops in March having decreased but remaining elevated. The data suggests Bitcoin has found support, but traders are hesitant to bet on a decisive rally or a deeper selloff.