 ▲ Bitcoin (BTC) |
Bitcoin (BTC) has staged a sharp recovery, reclaiming the $70,000 level, with experts pointing to easing inflation data and capital inflows into spot ETFs as the key drivers behind the rebound.
According to a February 14 report by crypto media outlet CoinGape, Bitcoin rose 3% over the past 24 hours, surpassing the $70,000 mark. The rally coincides with a broader market recovery, as the total cryptocurrency market capitalization increased 3.44% during the same period. Notably, Bitcoin’s correlation with gold has reached 78%, reinforcing analysis that investors are increasingly turning to Bitcoin as a hedge against inflation.
Sustained inflows into U.S. spot Bitcoin ETFs have served as a strong buffer against downside pressure. Data from SoSoValue shows that as of February 13, spot Bitcoin ETFs recorded net inflows of $15.2 million, with Fidelity’s FBTC leading the gains with $11.99 million in inflows. Additionally, news that former President Donald Trump’s social media platform, Truth Social, has applied to launch Bitcoin and cryptocurrency ETFs contributed positively to market sentiment.
Technical indicators have also signaled bullish momentum. Analyst CryptoRover highlighted that the CME futures gap at $68,899 has been filled, emphasizing that historically, price increases have frequently followed such gap closures. Another analyst, Ali, noted a buy signal on the TD Sequential indicator, suggesting a high probability of additional upside over the next three to nine days.
Improving macroeconomic indicators have further fueled Bitcoin’s rise. The U.S. Consumer Price Index (CPI) for January rose 2.4% year-over-year, below the expected 2.5% and marking the lowest level in four years, which revived investor appetite for risk assets. As inflationary pressures ease, Bitcoin has successfully defended the key support range between $60,000 and $65,000 and is attempting to establish support above $70,000.
Bitcoin’s Relative Strength Index (RSI) currently stands at 36.95, climbing steadily out of previously oversold territory. With the daily trading range forming between $68,730 and $70,560, analysts view $75,000 as the primary resistance level, projecting that a breakout above it could open the path toward $80,000 and even $90,000. The market’s Fear and Greed Index improved slightly from 8 to 11 from the previous day, and although it remains in extreme fear territory, experts believe short-term rebound momentum remains sufficient.
Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses resulting from its use. The content should be interpreted solely for informational purposes.