The bitcoin price surged back above $70,000 yesterday, bouncing back from a significant drawdown earlier this month, as cooler-than-expected U.S. inflation data reignited risk appetite across markets. The rebound follows a harsh period marked by billions in realized losses and ongoing indications of investor unease. At the time of reporting, Bitcoin was priced at approximately $70,215, reflecting an increase of about 2% in the last 24 hours, with daily trading volume hovering around $43 billion. The latest development positions the bitcoin price just shy of its seven-day peak at $70,434, as per market data, while also elevating its global market capitalization back over $1.4 trillion. The recent increase came after the release of January’s Consumer Price Index report, revealing a year-over-year inflation rise of 2.4%, just below the anticipated 2.5% mark. The softer print bolstered expectations that the Federal Reserve might start cutting rates sooner than earlier thought, a change that usually favors higher-beta assets such as cryptocurrencies.
Prediction markets indicated a shift in sentiment. Traders on Kalshi have ramped up the implied odds of an April rate cut to 23%, with Polymarket pricing also seeing an upward shift over the week. The resurgence in bitcoin price heading into the weekend also impacted crypto-related equities. On Friday, Coinbase experienced an impressive surge of 18%, while Strategy saw a notable jump of 10%, as investors shifted their focus back to digital-asset exposure. The decision was made despite Coinbase facing a challenging earnings environment, highlighted by a $666.7 million loss in Q4 2025 linked to declining trading revenue.
Strategy, meanwhile, stayed closely linked to bitcoin’s volatility, while reaffirming its long-term treasury approach. The company revealed this week that it acquired over 1,100 BTC, while also reporting a significant quarterly loss primarily attributed to mark-to-market declines on its assets, highlighting the balance-sheet risks associated with its bold strategy. The bitcoin price has faced significant challenges over the past few months, experiencing a steep decline from its October high of over $120,000 to the mid-$60,000 range following a prolonged downturn that lasted several months. The sell-off escalated in early February as BTC dipped beneath the crucial $70,000 psychological threshold.
Research firm K33 indicated that the drop towards $60,000 could signify a “local bottom,” highlighting capitulation-like conditions in volume, funding rates, options positioning, and ETF flows. Despite the rally, a deeper unease continues to linger beneath the surface. The Crypto Fear & Greed Index continues to hover in “extreme fear,” a sentiment reminiscent of the 2022 bear market and the downfall of significant industry figures.