Bitcoin Price Climbs Past $71K While Tech Selloff Cools and Traders Reset

TLDR

• Bitcoin moved back above $71,000 as the recent tech selloff eased.
• Traders saw the rebound as short covering rather than strong new buying.
• Stablecoin reserves on exchanges continued to fall and this signaled weak fresh demand.
• Analysts monitored shifting expectations for US interest rates and dollar strength.
• Galaxy Digital warned that bitcoin could still fall if selling pressure returns.

Bitcoin price (BTC) moved higher on Thursday as markets steadied, and the move followed sharp losses across assets, and traders reassessed short-term risks.

Bitcoin price stabilizes after early slide

Bitcoin pushed back above $71,000 as broader markets eased tension, and traders reacted quickly to calmer conditions. The rebound came after a fast selloff that briefly sent the token below $70,000.

Trading desks reported brisk activity as volumes stayed firm, yet spot demand remained thin. Analysts said the move looked like short covering and warned that buyers stayed cautious.

Galaxy Digital said bitcoin could return to lower levels if selling pressure builds. Its team pointed to weaker liquidity trends and falling stablecoin balances across exchanges.

Data showed shrinking stablecoin reserves, and this trend hinted at limited fresh inflows. Market participants said new capital waited for clearer signals.

Macro shifts added pressure as traders monitored US rate expectations. They adjusted positions as questions rose around potential policy moves from the Federal Reserve.

A stronger US dollar also weighed on risk assets. Analysts said bitcoin often reacts quickly when the currency strengthens.

Firms tracked tech equities as the Nasdaq 100 tried to recover from earlier losses. Bitcoin continued to move in tandem with growth stocks.

European and Asian markets steadied after heavy selling earlier in the week. Futures linked to key indexes also showed early strength.

The recent slump followed pressure in metals as silver dropped sharply. Gold slipped as traders exited speculative positions.

Market watchers highlighted that bitcoin had already faced a large drawdown. They said the slide erased gains that formed late last year.

Forecasts point to wide potential ranges

Research from Stifel suggested a possible move toward $38,000, and the team based its view on long-term crash patterns. Analysts said past cycle lows showed a rising trend line that aligned with this projection.

Barry B. Bannister said bitcoin losses followed a “linear trend,” and his team cited past declines of more than 70%. They said the pattern offered a possible floor for the current phase.

The group compared bitcoin to Benjamin Button due to shifting behavior. They said bitcoin once grew stronger with weaker dollars but now moved differently.

The analysts said the dollar’s recent slide no longer boosted bitcoin. They said the relationship “reversed” after 2025 began.

Tech stocks continued to influence short-term moves. Traders aligned bitcoin positions with shifts in growth valuations.

Rate cuts from late 2025 carried a firm tone. Markets read those actions as hesitant rather than supportive.

Borrowing costs for tech companies kept rising. Analysts said that trend added pressure on assets tied to leverage.

Bitcoin last traded near $71,463 during the session. The token revisited levels seen in late 2024 as markets processed new forecasts.

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