Bitcoin surpasses $73,000 amid ETF inflows and a return to risk appetite

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Bitcoin surpasses 73000

Highlights

Bitcoin jumps 8% to $73,400 as risk appetite returns.
$680 million flows into Bitcoin ETFs in two days.
Falling exchange reserves and short liquidations fuel rally.

Risk appetite returns

Bitcoin Hourly Chart. Source: TradingView

The rebound can be attributed to portfolio rebalancing amid expectations that the Middle East conflict could become prolonged, potentially leading to higher oil prices. Rising risk appetite has driven capital back into the crypto market, particularly into Bitcoin, which despite the current rally is still trading 42% below its all-time high.

This shift is evidenced by $680 million in inflows into Bitcoin ETFs over the first two days of the week. Combined with declining Bitcoin reserves on crypto exchanges, this has strengthened demand for the asset. According to Coinglass, nearly $300 million in short positions were liquidated over the past 24 hours, further accelerating Bitcoin’s upside momentum. Support from equity markets and broader macroeconomic factors also contributed, as easing market fears encouraged investors to buy both cryptocurrencies and traditional assets.

Anomalous behavior

Bitcoin’s current performance reflects a certain anomaly. In the past, crypto advocates often compared Bitcoin to gold, viewing it as a digital safe-haven asset during times of turmoil. However, this narrative faltered in recent months when Bitcoin declined while gold prices rose.

Now, the opposite dynamic is emerging. In recent days, BTC has outperformed, jumping about 9% since Friday—before the escalation of the Iranian conflict—while gold fell nearly 2% over the same period.

“Given the circumstances, last week’s situation reflected a statistical anomaly in Bitcoin and a completely different regime compared to both gold and equity indices,” said Vetle Lunde, Head of Research at K33.

“Short covering and a return to risk assets triggered today’s rebound, but volatility remains elevated. If macroeconomic sentiment fails to strengthen, Bitcoin may struggle to hold above resistance levels this week,” noted analyst Viktor Karapetyants.

A tactical rally

Financial markets remain cautious amid uncertainty in the Middle East and expectations of renewed turbulence. Investors are also awaiting fresh macroeconomic data, including the ISM Non-Manufacturing PMI, Services PMI, and February nonfarm payrolls, which could help determine the next direction for the crypto market.

An additional supportive factor is the structural decline in Bitcoin’s liquid supply. BTC balances on centralized exchanges continue to fall, creating a “coiled spring” effect: as ETF and institutional demand rises, price movements become amplified. Combined with the recent halving and the gradual reduction in issuance, the supply-demand balance appears tighter than in previous cycles.

Nevertheless, the current rally remains largely tactical in nature. It is driven primarily by short covering and a revival of risk appetite rather than sustained capital inflows into altcoins and the DeFi sector. For a more durable uptrend to emerge, the market will need confirmation from macroeconomic factors—particularly signals of monetary policy easing and declining U.S. Treasury yields. Until then, volatility is likely to remain elevated.

As we reported, Morgan Stanley plans to store Bitcoin for its ETF with Coinbase and BNY

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