BlockBeats News, March 4th, according to Decrypt, the Bitcoin rebound rally is still ongoing, breaking above $71,000 for the first time in three weeks. However, whether its upward momentum can continue still depends on the overall liquidity environment and geopolitical risks.
Altura Co-founder and CEO Ranveer Arora stated: “ETF inflows continue to provide structural buying support, but more direct driving factors seem to be position readjustment, reduced post-halving supply elasticity, and improving liquidity expectations. In the crypto market, once selling pressure is absorbed and positions start to rotate, leverage and derivative flows often accelerate the price discovery process.” Arora believes that Bitcoin’s trend is still closely related to the global liquidity environment. He pointed out that Bitcoin’s performance “is more like a high-beta expression of the global liquidity condition than a traditional defensive asset.”
LetsExchange Chief Product Officer Alex J. stated that Bitcoin’s rise to $71,000 was “mainly driven by the escalation of geopolitical tensions and increasing uncertainty.” When asked if this round of rebound can be sustained, Alex J. said, “Most likely not. But the price is not expected to drop significantly either.” He explained that when the global financial system experiences severe turbulence and significantly affects the liquidity flow between different assets, Bitcoin finds it difficult to compete with conservative assets like gold.
