Key Highlights
- Bitcoin surged above $72,000 after weeks of losses, as supported by institutional flows
- U.S. spot Bitcoin ETFs saw $1.45 billion in net inflows over five days, helping stabilize the market despite cautious trading.
- Bitcoin price shows signs of recovery from oversold levels, with long-term holders easing up on selling.
Bitcoin price is up over $72,000 today, hitting a one-month high, thanks to increase in institutional demand, which lifted the market amid the ongoing tension in the Middle East. At the time of writing, Bitcoin is trading for $72,922, up 8.74% from the previous day.
Over the last one month, the token has been consolidating sideways from a low of $60k to $71k high, however, Bitcoin has broken from this trend.
In fact, the cryptocurrency has bounced back after six straight weeks of losing and five months of decline. In addition, trading volume is up by 23% to over $66 billion in volume while its market cap sits at $1.45 trillion.
Bitcoin ETF recorded $225 million on March 3rd
U.S-listed spot Bitcoin ETFs added to the support. According to Sosovalue, ETFs recorded around $1.45 billion in net inflows in the last five days, including $225 million on March 3 and $458 million the day before.
On March 3, Blackrock alone brought in about $322 million in inflow. However, Fidelity and Grayscale made a combined withdrawal of about $117 million.
Meanwhile, on-chain and derivative data show that traders are still cautious. According to data from Coinglass, spot trading volume has also climbed from $6.6 billion to $11.8 billion over the last 24 hours, indicating that while Bitcoin was rising, traders were carefully adjusting their position.
In addition, Perpetual futures volume is by 26% to over $107 billion, while Bitcoin open interest in major contracts jumps by 11% to about $46.74 billion as traders hedged rather than chased gains
Futhermore, Bitcoin’s Relative Strength index has gone from 36 to 56, which means the price has tapped off from an oversold level and buyers have taken over the market.
Trumps says talk with Iran is “Too Late”
The conflict in the Middle East added more pressure to the market. The surge came after Bitcoin price dropped as low as $64k on Sunday after the U.S. and Israel launched airstrikes in Iran targeting military and government sites. Iran responded with hundreds of missile and drone attacks on Israel, U.S. bases, and other Gulf countries. The Red Crescent reported 787 dead in Iran, with thousands injured.
Meanwhile, President Trump said on Truth Social, “Their air defense, Air Force, Navy and Leadership is gone. They want to talk. I said ‘Too Late!’” He also said the U.S. was ready for a longer conflict than four or five weeks.
Moreover, this happened because traders were closing their short positions, not because of new buying. Many had bet that tensions between the U.S., Israel, and Iran would get worse, but when the situation did not escalate, those bets had to be reversed, pushing Bitcoin higher
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