Key Highlights
- BTC staged a recovery above $70,000 following a weekend decline to approximately $65,000
- Crude oil’s retreat from roughly $120 per barrel to around $90 helped calm inflation concerns
- President Trump’s statements regarding a possible resolution to the Iran conflict lifted investor confidence
- Last week’s net inflows into U.S. spot Bitcoin ETFs totaled $568 million; aggregate inflows have surpassed $55 billion
- Polymarket probability for BTC reaching $75,000 in March surged from 34% to 56% within 24 hours
The world’s largest cryptocurrency experienced a steep decline over the weekend, touching approximately $65,000 before staging an impressive comeback above the $70,000 threshold by Tuesday’s Asian trading session. The initial downturn was sparked by a spike in petroleum prices following disruptions in the Strait of Hormuz, which drove both WTI and Brent crude beyond the $100 per barrel mark for the first time in recent years.
The turnaround gained momentum as petroleum prices pulled back and overall market optimism returned.
President Donald Trump indicated that the ongoing confrontation with Iran might conclude in the near future. While acknowledging a resolution this week seemed improbable, he emphasized that any attempt by Iran to block the Strait of Hormuz would trigger a U.S. response “20 times harder.”
Crude oil prices declined to approximately $90 per barrel on Tuesday after approaching $120 on Monday. This reversal helped alleviate concerns about worldwide inflation pressures that had unsettled financial markets.
Stock markets across Asia bounced back on Tuesday, recouping portions of Monday’s declines. U.S. equities also registered overnight gains, with Bitcoin mirroring the enhanced risk appetite.
Bitcoin ETF Demand Stays Robust
U.S. spot Bitcoin exchange-traded funds maintained consistent investor interest throughout the market turbulence. Last week’s net inflows totaled approximately $568 million, down from the previous week’s $787 million, based on SoSoValue tracking data.
Total cumulative net inflows for all U.S. spot Bitcoin ETF offerings have now exceeded the $55 billion milestone. Preliminary Monday data indicated inflows of roughly $57 million, though several issuers had yet to submit complete figures at press time.
Market maker Enflux observed that Bitcoin demonstrated greater resilience compared to equities and certain traditional safe-haven assets during the initial market downturn. The firm reported BTC momentarily dipped under $66,000 before finding support in the $66,000–$68,000 range.
Market Expectations Shift Dramatically
Polymarket, a decentralized prediction platform, reflected a dramatic change in trader outlook. The probability of Bitcoin touching $75,000 during March skyrocketed from approximately 34% to 56% within one day as BTC recaptured the $70,000 mark.
Glassnode’s research team highlighted improvements in momentum indicators, ETF inflows, and profitability measurements. However, they cautioned that capital flows remain subdued and speculative activity continues to lag.
From a technical analysis perspective, Bitcoin confronts resistance levels near $69,250 and $69,600. Breaking convincingly above $69,600 could pave the way toward $70,500 and subsequently $72,000.
Critical support zones are positioned at $68,000 and $67,500. The primary support floor remains situated around $65,500.
Market participants are now closely monitoring the upcoming U.S. January CPI report scheduled for Wednesday and February’s PCE index data arriving Thursday.
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