#BTC☀️

Bitcoin falls under $71K but data shows BTC’s bullish momentum holding

Spot market demand through US-listed ETFs and Strategy buying BTC supports Bitcoin’s bullish momentum.

Low leverage among Bitcoin bulls reduces the risk of cascading liquidations even if prices drop another 5%.

Rising inflation concerns negatively impact fixed-income returns, paving the way for an eventual rotation from gold into Bitcoin.

Bitcoin (BTC) faced a 7% correction after flirting with the $76,000 level on Tuesday. The downturn followed a decline in the US stock market after oil prices surged due to Israel attacking Iran’s largest gas processing facility and the US producer price index rising above expectations.

Despite the recent losses, there is no indication that Bitcoin’s bullish momentum has faded, given how the S&P 500 and US Treasuries have behaved amid worsening macroeconomic conditions. Additionally, Bitcoin bulls have avoided excessive leverage, reducing the risks of cascading liquidations.

 WTI oil futures (left) vs. S&P 500 futures (right). Source:

The S&P 500 index traded merely 4% below its all-time high on Wednesday despite recent weak US job market data and continued pressure from the ongoing war in Iran. The US reported continued jobless claims relatively steady at 1.85 million in the week ending March 7. On Wednesday, the US announced that wholesale prices gained 3.4% in February versus the prior year, the largest gain in 12 months.

As oil prices jumped above $98, investors became more convinced that the US Federal Reserve will not be able to ease monetary policy throughout 2026. CME FedWatch Tool showed that odds for a steady interest rate by September plummeted to 42% on Wednesday, from 89% one month prior, according to implied odds on futures markets.