Bitcoin clawed its way back above $71,000 on Thursday after a sharp sell-off earlier in the day dragged prices briefly below the $70,000 mark, reflecting tentative stabilization across global markets.
The move came as a broader rout in tech stocks showed signs of fatigue. Futures tied to the Nasdaq 100 edged higher after two bruises erased the index’s gains for the year, while European shares steadied and Asian markets trimmed losses.
Bitcoin had fallen as much as 7% over the previous 24 hours as investors reduced risk across assets linked to growth and leverage. The slide coincided with renewed pressure in precious metals, with silver plunging as much as 17%, extending a brutal reversal after last month’s record rally.
Gold also fell, underscoring how quickly speculative trades across markets have been settled.
In crypto, the rise above $71,000 looks more like short covering than a renewed rush of buyers. Trading volume remains high, but demand on the spot market has thinned, according to analysts.
Stablecoin balances on exchanges have also declined, suggesting that fresh capital is staying on the sidelines rather than stepping aggressively into declines.
Macro uncertainty continues to weigh on sentiment. Investors are recalibrating expectations around U.S. interest rates amid speculation over Federal Reserve leadership and the risk of a stronger dollar, which typically pressures assets like bitcoin that thrive on easy liquidity.
Some companies remain cautious. Galaxy Digital has warned that without a clear catalyst, bitcoin could still revisit lower levels if selling resumes.
Others see the bulk of the downside as already behind the market, with estimates clustered around a potential bottom in the low-to-mid $60,000 range.
