Rabat – Bitcoin rose above $71,000 today after briefly falling below the $70,000 level earlier in the day, tracking a pause in a broader sell-off across global technology stocks.
The world’s largest cryptocurrency was last trading around $71,200, after dropping as much as 7% over the previous 24 hours, according to market data. The decline coincided with losses in other risk assets as investors reduced exposure to growth-oriented and leveraged markets.
The rebound came as pressure in equity markets eased. Nasdaq 100 Futures index edged higher after two consecutive sessions of declines that erased its year-to-date gains. European equities stabilized, while Asian markets pared earlier losses.
Analysts said the move higher in bitcoin appeared to be driven primarily by the covering of short positions rather than fresh buying. Several firms noted that spot market demand remained weak, despite elevated trading volumes.
Data from crypto exchanges showed stablecoin balances continuing to edge lower, suggesting limited new capital entering the market during the price decline.
Bitcoin’s drop occurred alongside sharp moves in other markets. Silver prices fell as much as 17% in intraday trading, extending a reversal from last month’s highs. Gold prices also declined, reflecting a broader reduction in speculative positions across asset classes.
Market participants remain focused on macroeconomic factors, particularly uncertainty around US interest rates and the future path of Federal Reserve policy.
Expectations of tighter financial conditions and a stronger dollar have weighed on assets that tend to benefit from ample liquidity, including cryptocurrencies.
Some firms cautioned that bitcoin could face renewed downside pressure if broader market selling resumes. Others said recent price action suggests the bulk of the correction may have already occurred, with potential support seen in the low to mid-$60,000 range.
Read also: Memecoin Trading Activity Picks Up After CATX 3,600% Surge in 24 Hours
