The price of Bitcoin surged past $70,000 on Saturday, recovering from a recent downward trend that had raised concerns among investors. This rebound was primarily fueled by unexpected U.S. inflation data, which sparked renewed risk appetite in various markets. Currently, Bitcoin is trading around $70,215, reflecting an increase of approximately 2% in the last 24 hours, with daily trading volume near $43 billion. This uptick positions Bitcoin just shy of its seven-day peak of $70,434, boosting its global market capitalization beyond $1.4 trillion.
The recent price movement followed the release of the Consumer Price Index report for January, which indicated a year-over-year inflation rise of 2.4%, slightly lower than the anticipated 2.5%. This softer inflation reading has bolstered expectations that the Federal Reserve may initiate interest rate cuts sooner than previously expected—an outcome typically favorable for riskier assets, including cryptocurrencies. Prediction markets have reflected this shift; traders on Kalshi have increased the implied probability of an April rate cut to 23%, while broader market sentiment has also seen positive adjustments.
The rally in Bitcoin’s price is mirrored in the cryptocurrency-linked equities market. On Friday, Coinbase saw its stock price soar by 18%, while MicroStrategy experienced a 10% jump; both developments suggest a renewed investor interest in digital assets. Despite facing challenging earnings at Coinbase—evidenced by a substantial $666.7 million loss in Q4 2025, attributed to declining trading revenue—investors seem willing to rotate back into the crypto space. MicroStrategy maintains a close correlation with Bitcoin’s price swings and recently reported an additional purchase of more than 1,100 BTC, even while posting significant quarterly losses due to market valuation declines in its holdings.
The past few months have been tumultuous for Bitcoin, which has witnessed a sharp decline from an October peak of over $120,000, plunging into the mid-$60,000 range after a prolonged downturn. Alarmingly, the sell-off accelerated in early February when the cryptocurrency slipped below the critical $70,000 psychological support level.
Research firm K33 has suggested that the recent dip toward the $60,000 mark might signify a “local bottom,” indicating capitulation-like conditions within trading volumes, funding rates, and options positioning. Despite the ongoing rally, apprehensions linger in the market. The Crypto Fear & Greed Index remains entrenched in the “extreme fear” category, a sentiment reminiscent of the 2022 bear market that saw the collapse of numerous major players in the industry. The persistent unease underscores the complexities of navigating the volatile cryptocurrency landscape, even in the face of short-term recovery trends.
