TLDR
- BTC climbed back above $70,000 following a weekend decline to approximately $65,000
- Crude oil retreating from ~$120 to ~$90 per barrel helped calm inflation concerns
- President Trump’s remarks regarding possible resolution to Iran conflict improved market optimism
- Spot Bitcoin ETFs in the United States recorded $568 million in net inflows last week; total cumulative inflows surpass $55 billion
- Polymarket probability of BTC reaching $75,000 in March surged from 34% to 56% within 24 hours
Bitcoin experienced a significant decline to approximately $65,000 during the weekend before staging a comeback above $70,000 by Tuesday morning during Asian market hours. The downturn was sparked by a spike in crude oil prices following supply disruptions at the Strait of Hormuz, which sent WTI and Brent crude beyond $100 per barrel for the first time in several years.
The turnaround commenced as petroleum prices pulled back and overall market confidence strengthened.
President Donald Trump indicated that the current conflict involving Iran might conclude in the near future. While noting it probably wouldn’t finish this week, he warned that the United States would strike back “20 times harder” should Iran attempt to close the Strait of Hormuz.
Crude oil retreated to approximately $90 per barrel on Tuesday following Monday’s peak near $120. This decline helped alleviate concerns about worldwide inflation acceleration that had disturbed financial markets.
Asian equity markets bounced back on Tuesday, recouping portions of Monday’s declines. U.S. markets also recorded gains during overnight trading, with Bitcoin following the positive shift in risk appetite.
Bitcoin ETF Capital Flows Stay Strong
Spot Bitcoin ETFs in the United States maintained consistent investor interest throughout the market turbulence. Net capital inflows totaled approximately $568 million last week, compared to $787 million the previous week, per SoSoValue data.
Total cumulative net inflows for all U.S. spot Bitcoin ETF offerings have now exceeded $55 billion. Preliminary figures indicated Monday’s inflows were approximately $57 million, although not all providers had released data at publication time.
Market maker Enflux observed that Bitcoin demonstrated greater resilience than equities and certain traditional safe-haven assets during the initial market downturn. The company noted that BTC briefly dropped below $66,000 before finding stability in the $66,000–$68,000 zone.
Market Expectations Pivot Rapidly
Decentralized prediction platform Polymarket revealed a dramatic change in trader forecasts. The likelihood of Bitcoin hitting $75,000 in March soared from approximately 34% to 56% within one day as BTC recovered the $70,000 threshold.
Researchers at Glassnode observed that momentum indicators, ETF demand patterns, and profitability measurements are showing enhancement. They noted, however, that capital flow dynamics remain subdued and speculative market participation continues to be constrained.
From a technical analysis perspective, Bitcoin encounters resistance around the $69,250 and $69,600 levels. Breaking decisively above $69,600 could pave the way toward $70,500 followed by $72,000.
Critical support zones are positioned at $68,000 and $67,500. The primary support floor remains established around $65,500.
Market participants are currently monitoring the upcoming U.S. January CPI data scheduled for Wednesday and the February PCE index release set for Thursday.
