Bitcoin rebounds back to $71,000: Tech stock sell-off cools down, market seeks new balance after panic
Bitcoin experienced a rapid dip in early Thursday trading but regained the $71,000 level. Previously, the price briefly fell below $70,000, triggering market anxiety, but then rebounded significantly, indicating short-term selling pressure is easing. Meanwhile, the tense atmosphere in global stock markets has also eased, with tech stocks halting their two-day decline, showing signs of temporary stabilization in risk assets.
In the U.S. stock market, Nasdaq 100 futures edged higher, after the index’s gains for the year had been completely wiped out. Major European stock indices stabilized, and Asian markets saw a noticeable narrowing of declines. Investors had previously reduced exposure to high-growth and high-leverage assets, causing Bitcoin to drop about 7% in the past 24 hours.
Precious metals also came under pressure. Silver plummeted 17% in a short period, continuing its rapid retreat after a significant rally, while gold prices also declined, reflecting the swift unwinding of speculative positions. The synchronized movement across multiple assets highlights the market’s high sensitivity to liquidity and macro risks.
Within the cryptocurrency market, this rebound appears more like a technical correction driven by short covering rather than new buying interest. Analysts note that although trading volume remains high, spot demand has not significantly recovered. The stablecoin balances on trading platforms continue to decline, indicating off-chain funds are still on the sidelines, waiting for clearer signals.
On the macro front, uncertainty persists. Investors are reassessing expectations for U.S. interest rate paths and paying close attention to Federal Reserve policies and the potential impact of a strengthening dollar. Historical experience shows that a stronger dollar often suppresses assets that rely on liquidity.
Some institutions remain cautious. Galaxy Digital warns that without new catalysts, Bitcoin could test lower levels if selling resumes. However, some market participants believe that most panic has been absorbed, and prices around $60,000 may form a medium-term support level. Currently, Bitcoin’s correlation with global risk assets remains high, and its future trajectory will largely depend on macroeconomic signals.
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