TLDR

  • BTC climbed back above $70,000 following a weekend decline to approximately $65,000
  • Energy markets cooled as oil retreated from roughly $120 to around $90 per barrel, reducing inflation concerns
  • Market confidence improved following Trump’s remarks suggesting the Iran conflict may conclude soon
  • Spot Bitcoin ETFs in the United States recorded $568 million in net inflows during the past week; total cumulative inflows have surpassed $55 billion
  • Polymarket probability of BTC reaching $75,000 in March surged from 34% to 56% within 24 hours

BTC experienced a sharp decline to approximately $65,000 during the weekend before rallying back above $70,000 by Tuesday morning in Asian trading sessions. The downturn occurred when energy prices spiked following disruptions in the Strait of Hormuz, which drove WTI and Brent crude above $100 per barrel for the first time in several years.

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Bitcoin (BTC) Price

The rally commenced as energy prices pulled back and overall market confidence strengthened.

President Donald Trump indicated the current conflict involving Iran might conclude in the near term. While acknowledging a resolution this week appeared improbable, he stated the United States would retaliate “20 times harder” should Iran attempt to close the Strait of Hormuz.

Energy prices retreated to approximately $90 per barrel on Tuesday after approaching $120 on Monday. This decline reduced concerns about worldwide inflation pressures that had unsettled financial markets.

Asian equity markets rallied on Tuesday, recouping portions of Monday’s declines. U.S. stock markets also advanced during overnight sessions, with Bitcoin following the upturn in risk appetite.

ETF Inflows Remain Steady

Spot Bitcoin ETFs in the United States maintained strong demand throughout the market turbulence. Net inflows reached approximately $568 million during the past week, following the previous week’s $787 million, based on SoSoValue data.

Total cumulative net inflows for all U.S. spot Bitcoin ETF products have exceeded $55 billion. Preliminary data indicated Monday’s inflows stood at roughly $57 million, although some issuers had yet to report complete figures at publication time.

Market maker Enflux observed that Bitcoin demonstrated greater resilience compared to equities and certain traditional safe-haven assets during the initial downturn. The firm reported BTC briefly dropped below $66,000 before finding support in the $66,000–$68,000 zone.

Trader Sentiment Shifts Quickly

Polymarket, a prediction platform, revealed a dramatic change in trader outlook. The probability of Bitcoin hitting $75,000 in March increased from approximately 34% to 56% within one day as BTC recaptured the $70,000 threshold.

Glassnode analysts observed that momentum indicators, ETF demand, and profitability measurements show signs of improvement. They mentioned that capital flows continue to show weakness and speculative activity remains subdued.

From a technical perspective, Bitcoin encounters resistance around $69,250 and $69,600. Breaking decisively above $69,600 would likely pave the way toward $70,500, with $72,000 as the next target.

Critical support zones are located at $68,000 and $67,500. The primary support floor stands at approximately $65,500.

Market participants are closely monitoring the upcoming U.S. January CPI report scheduled for Wednesday and the February PCE index set for release on Thursday.