- BTC rebounded nearly 7% after dipping toward $65K amid geopolitical tensions.
- Spot Bitcoin ETFs saw over $8.9 billion in outflows during the recent correction.
- Bitcoin social mentions jump 127%, hitting levels seen in previous major rallies
Bitcoin rose over the past 24 hours, trading above $70,000. The coin gained roughly 7% during the day, despite growing macroeconomic pressure, including rising geopolitical tensions and elevated U.S. bond yields.
Bitcoin Rebounds After Sharp Drop
Bitcoin’s latest rally followed a period of intense volatility.
Last week, the asset briefly slid toward $63,000–$65,000 as markets reacted to escalating tensions involving Iran after reported missile strikes linked to the United States and Israel. However, Bitcoin quickly recovered, stabilized around $66,000–$68,000, and posted a strong rebound over the following days.
Market attention has surged alongside the rally. Social media tracking data shows more than 417,000 mentions of BTC, roughly 127% above the daily average, approaching levels last seen during major rallies.
ETF Investors Still Under Pressure
Despite the rebound, data suggest that institutional investors in Bitcoin exchange-traded funds remain under strain.
According to blockchain analytics platform CryptoQuant, the average realized price for spot Bitcoin ETF investors is estimated at around $79,000. With Bitcoin currently trading below around $70K, many ETF holders remain underwater relative to their entry levels.
During the recent correction, the sector experienced significant outflows. More than $8.9 billion exited spot Bitcoin ETFs, marking the largest dollar drawdown since the products launched.
One of the most affected funds was BlackRock’s iShares Bitcoin Trust (IBIT). The ETF reportedly saw over 42,000 BTC leave the fund after reaching peak holdings of more than 806,000 BTC.
While the outflows contributed to selling pressure earlier in the correction, analysts say the situation appears to be stabilizing. Current drawdown levels have improved slightly, now sitting near $7.8 billion below the all-time high.
The analyst said that stronger demand from ETF investors would help Bitcoin establish a more solid foundation.
Related: When Will the US-Iran War Be Over? Insights from ChatGPT, Claude, and Grok
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Source: https://coinedition.com/bitcoin-rebounds-above-70k-amid-record-8-9b-etf-drawdown/
