US, Mar 05 : Bitcoin soared above $73,000 on Thursday, marking its highest level in a month, as cryptocurrency markets regained momentum fueled by ETF inflows and rising open interest. The largest digital asset climbed as much as 8.9% to around $74,000, while Ether surged nearly 13% to trade close to $2,200.
Traders attribute the rebound to a short squeeze triggered by previous overselling, with Bitcoin moving away from crisis pricing into a consolidation phase dominated by strategic positioning rather than panic hedging, according to blockchain analytics firm Glassnode.
“Short sellers were overly confident that prices would continue to fall,” said Alex Kuptsikevich, chief market analyst at FxPro. “With oversold conditions since October, Bitcoin only needed a step up to ignite the rally.”
ETF inflows strengthened market sentiment, with U.S. spot Bitcoin ETFs attracting over $680 million in the past two days, while open interest in perpetual futures rose sharply as traders opened new long positions, noted Julio Moreno, head of research at CryptoQuant.
Despite the gains, the cryptocurrency market remains sensitive to geopolitical developments. Bitcoin dropped to around $63,000 following U.S. and Israeli strikes on Iran, highlighting the asset’s ongoing vulnerability to external shocks.
Market analysts say the surge also reflects growing rotation of capital back into crypto, as gold underperformed over the past week. “Amid geopolitical tensions and economic uncertainty, Bitcoin is regaining attention as a digital safe-haven alternative,” said Frank Chaparro, head of content at GSR.
However, experts caution that the rebound may be temporary. Volatility remains high as the U.S.-Iran conflict continues, with institutional investors reducing leverage in response to uncertainty. “The situation is fragile, and Bitcoin’s rally could face setbacks due to broader market volatility,” Kuptsikevich added.
As the crypto market navigates this mix of opportunity and risk, ETF demand and market positioning will likely dictate short-term trends, while global events continue to influence investor sentiment.