Bitcoin rebounds above $70,000 after sharp selloff in risk assets

NEW YORK/LONDON: Bitcoin climbed back above the $70,000 mark on Friday after falling to its lowest level in more than a year earlier in the session, tracking a broader rebound in global risk assets including technology stocks and precious metals.

The world’s largest cryptocurrency was trading around $70,231, up more than 11% on the day, after touching an intraday high near $71,465. Earlier, it had dropped to $60,017.60, its weakest level since October 2024. Despite the sharp rebound, bitcoin remained down about 8% for the week, marking its largest one-day gain since March 2023.

Market participants attributed the recovery to stabilisation across risk assets following a global selloff that had weighed on equities, metals, and cryptocurrencies. Analysts said Friday’s move appeared more reflective of consolidation rather than a clear reversal in sentiment.

Options market data pointed to continued caution among investors. Demand for downside protection increased, with traders building positions focused on the $60,000 to $50,000 price range ahead of the February 27 expiry. Market participants said this positioning suggests expectations of further volatility in the near term despite the price rebound.

Ether also rose sharply, gaining about 12% to trade near $2,068 after earlier sliding close to a 10-month low. It remained down more than 9% for the week, though Friday marked its strongest daily performance since August last year.

Despite the bounce, the broader cryptocurrency market has lost significant value since peaking in early October. Data showed total market capitalisation has declined by around $2 trillion since that peak, with more than $1 trillion erased over the past month alone.

Analysts said recent losses reflected the unwinding of leveraged positions across multiple asset classes, including cryptocurrencies and precious metals. Gold and silver, which had also experienced heavy selling, rebounded on Friday, with silver rising nearly 9% and gold gaining about 4%.

Bitcoin’s price movements have remained closely linked to the broader technology sector, particularly stocks tied to artificial intelligence. US equity markets surged on Friday, with major indices posting strong gains as chipmakers led a rally in tech shares.

Market observers noted that while volatility remains elevated, similar corrections have occurred repeatedly over the past decade. They said short-term price swings continue to test investor risk management, even as longer-term market participants remain focused on broader adoption trends.