After rebounding for two consecutive days, Bitcoin is now in a consolidation phase, recently trading around the $70,000 mark, with a cumulative gain of nearly 5% this month. Previously, Bitcoin had briefly dipped towards the $65,000 area due to the impact of risk sentiment triggered by the Middle East conflict.
The improvement in market sentiment is mainly related to the short-term easing of geopolitical tensions. U.S. President Donald Trump stated that the conflict with Iran might end faster than expected, which boosted the stock market, caused oil prices to fall, and led to a rebound in Bitcoin prices.
On-chain data shows that futures open interest has risen back to about $22.1 billion, reflecting new market positions flowing in. Analysis firms noted that the liquidity shock caused by the conflict is diminishing rather than evolving into a structural bear market.
Meanwhile, the U.S. spot Bitcoin ETF recorded significant net inflows during the price rebound, indicating that institutional investors are opting to allocate during market pullbacks.
