Bitcoin surged above $73,000 this morning, hitting a one-month high as institutional demand and technical support supported the market amid geopolitical tensions in the Middle East.
The price of bitcoin has bounced back from recent declines following six consecutive weekly losses and five consecutive months of declines.
Yesterday, the price of Bitcoin was close to $ 70,000 but did not pass. During Asian trading hours on March 4, it crossed that threshold.
Market participants said the rebound shows traders hedging bearish bets and adjusting positions with new bullish demand. Many have built heavy short positions on fears that the Iran conflict will escalate.
When the situation doesn’t expand into a wider regional conflict, those shorts are forced to loosen up, helping to push bitcoin higher.
Bitcoin price has macro tailwinds
“If BTC holds above 71k until Friday’s NFP print and builds a continuation, the range structure changes materially,” Nicolai Søndergaard, Research Analyst at Nansen, wrote Bitcoin Magazine.
“The number of low ratepayers could strengthen expectations for a rate cut ahead of the March 18 FOMC decision, providing a significant tailwind to the margins. However, if the rate fails to hold as it has in the past, the 60k to 71k range remains intact, and fading to the margins is the safer path until clear guidance is confirmed.”
Institutional flows provided additional support. US-listed ETFs recorded nearly $1.45 billion in inflows over the past five days.
Daily ETF inflows remained high, with $225 million recorded on March 3 following $458 million the previous day.
On-chain data and derivatives show stability, although traders remain cautious. Glassnode reported a moderate rebound in momentum indicators, including bitcoin’s strength index rising to 41 from 36 last week.
Spot trading volume rose to $9.6 billion from $6.6 billion, while derivatives markets continued to show a defensive stance.
Inexpensive futures rates remain negative, and open interest in major contracts has grown as traders adjust positions instead of chasing new gains.
President Trump: Genius Act ‘under threat’
Yesterday, President Trump criticized the banking industry, saying that the stablecoin law he signed last year, the GENIUS Act, is “threatened and undermined by banks.”
The dispute centers on a regulation that prevents stablecoin issuers from paying interest to owners, which banks argue creates a loophole for third-party rewards programs.
Crypto advocates insist that such rewards are essential for stablecoins to compete in payments, while banks are pushing lawmakers to amend new market structure laws, including the Clarity Act.
The standoff stalled progress in the Senate, despite White House-led meetings between banking and crypto representatives.
Despite this, the price of bitcoin appears to have found close support after months of selling pressure, bolstered by ETF inflows, derivatives positioning, and moderate long-term owner outflows.
At the time of writing, the price of bitcoin is close to $73,050.
