Bitcoin traded above $71,000 as weak U.S. economic data and geopolitical tensions spurred interest in scarce assets. However, technical correlations and high oil prices suggest the broader five-month correction from its $126,000 peak may not yet be over, despite recent institutional inflows.
Bitcoin regained ground above $73,000 as weak economic data fueled recession concerns. The U.S. economy grew a mere 0.7% in late 2025, according to a U.S. Commerce Department report, driving investors away from Treasuries.
Yields on the 10-year Treasury surged to 4.26%, signaling demand for higher returns. This search for scarce assets partially explains the S&P 500 trading near record highs despite worsening conditions.
S&P 500 futures recently hit multi-month lows after oil prices briefly surged. The U.S. move to authorize purchases of stranded Russian oil, announced by US Treasury Secretary Scott Bessent on Friday, eased short-term market concerns.
Spot Bitcoin ETFs recorded four days of net inflows totaling $583 million. Analysts estimate that Strategy (MSTR) accumulated over $900 million through a yield-bearing instrument.
Bitcoin’s 50-day correlation with the Nasdaq 100 sits at 84%. Concerns over inflation and stagnant growth increase odds of a broader stock market pullback.
Oil prices remain $30 higher than pre-conflict levels, pressuring consumer spending. High fuel costs create inflationary pressure and reduce capital available for crypto investments.
Spot BTC ETF inflows drove a 14% rally recently, but prices later slipped 10% as flows reversed. This suggests ETF activity reacts to Bitcoin’s price rather than leading it.
A five-week consolidation shows bull confidence after tests of the $64,000 support. The recent price action, however, has not delivered a clear signal for a sustained breakout.
