Bitcoin slipped below the $70,000 level after ETF flows reversed and geopolitical tensions intensified. While spot demand shows signs of improvement, broader macro risks continue to keep the cryptocurrency market volatile.
Spot Demand Remains Strong
The cryptocurrency market continues to experience significant volatility as Bitcoin unexpectedly dropped below the $70,000 mark following a brief rally. The previous recovery was largely driven by increasing spot demand and strong inflows into spot Bitcoin ETFs in the United States. However, the reversal of ETF flows combined with an uncertain macroeconomic backdrop has made market sentiment more cautious.
According to the latest market data, Bitcoin is currently trading around $68,900, down more than 4% over the past 24 hours. This decline comes as geopolitical tensions in the Middle East escalate, triggering broader fluctuations across global financial markets.
Despite the recent price pressure, several positive signals have emerged from the spot market. In a report released on March 5, analysts at Bitfinex noted that genuine buying demand has improved significantly since tensions related to Iran escalated over the weekend.
Based on data from the exchange, approximately $3.5 billion worth of Bitcoin has been systematically purchased on the market since March 1. This strong demand appeared simultaneously across several major exchanges, allowing Bitcoin to quickly recover some important price levels after its previous correction.
Another notable indicator is the Coinbase Premium — the price difference between Coinbase and global exchanges. After remaining negative for 40 consecutive days, the indicator has returned to positive territory, suggesting that demand from U.S. investors is beginning to recover.
ETF Flows Reverse After Three Positive Sessions
Although spot demand is improving, the market continues to be heavily influenced by ETF flows. During the first three trading sessions of the week, spot Bitcoin ETFs in the United States recorded strong inflows.
Specifically, March 2 saw $458.2 million in net inflows, followed by $225.2 million on March 3 and $461.9 million on March 4. This series of positive inflows helped reinforce Bitcoin’s recovery momentum after the earlier market correction.
However, the trend changed on March 5 when ETFs recorded a combined outflow of $227.9 million. BlackRock’s IBIT fund, which had led inflows during the previous three sessions, also shifted into negative territory during this trading day.
Overall, between March 2 and March 5, spot Bitcoin ETFs still recorded nearly $1 billion in total net inflows. Nevertheless, the reversal in flows has made the market more sensitive to macroeconomic factors.
Institutions Remain Cautious About Market Risks
Analysts at Nansen suggest that the current buying activity appears more selective rather than part of a broad accumulation phase. Many institutional investors are still choosing to hold stablecoins or deploy yield-generating strategies instead of opening large directional positions in Bitcoin.
This indicates that institutional capital remains cautious, especially as global markets continue to face multiple sources of uncertainty.
Energy Prices and Macro Factors Continue to Influence the Market
Beyond geopolitical developments, analysts from QCP Capital believe that energy prices may be the key variable influencing financial markets.
According to the firm’s analysis, Bitcoin initially maintained its upward momentum thanks to ETF inflows and increasing open interest in derivatives markets. However, once macro volatility returned, a portion of those gains was quickly erased.
The major question facing the market now is whether oil prices will remain elevated long enough to continue putting pressure on bond yields. If that happens, risk assets — including cryptocurrencies -s could struggle to sustain long-term upward momentum.
The Relationship Between Bitcoin and Oil Remains Unclear
A report from Binance Research notes that the correlation between Bitcoin and crude oil prices is inconsistent and tends to shift depending on market conditions. As a result, investors should not view Bitcoin as a straightforward hedge against energy shocks.
Researchers at Binance also pointed out that the market is currently balancing three major forces simultaneously: escalating geopolitical tensions, growing competitive pressure within the software sector driven by artificial intelligence, and the fragility of the private credit market.
The Market Remains in a Fragile Balance
Although Bitcoin has recovered compared with previous corrections, some indicators suggest that the market is not yet overheated. Bitfinex reported that open interest in derivatives markets has increased in a relatively balanced manner alongside spot demand, while perpetual futures funding rates remain at moderate levels.
However, liquidation data shows a dense cluster of long liquidations around the $70,000 level. If a sharp downturn occurs, Bitcoin could retest the nearby support zone around $66,000.
Under current conditions, the market remains in a delicate state. On one hand, spot demand is improving and institutional participation continues. On the other hand, the reversal of ETF flows, macro pressure from energy prices, and upcoming economic events could continue to generate significant volatility.
Some analysts from CryptoQuant believe that Bitcoin’s recent rally may simply represent a “technical rebound” if the market cannot maintain strong demand in the coming weeks — particularly as key economic data such as employment reports, inflation figures, and new geopolitical developments continue to unfold.
Managing Market Volatility with Pulse Wallet
Periods of sharp market movement — like Bitcoin’s drop below $70,000 — highlight how important it is for crypto users to have fast, reliable access to their assets. Whether investors are reacting to macro-driven volatility, adjusting positions, or moving funds across chains, having the right wallet infrastructure becomes critical.
Pulse Wallet is designed to support users navigating exactly these kinds of market conditions. Built for the PulseChain ecosystem, the wallet allows users to store, send, and manage crypto assets with extremely low transaction costs and fast confirmation speeds.
When market conditions change quickly — as seen with ETF flow reversals or sudden geopolitical developments — PulseChain’s low gas fees make it far more practical for users to move assets, rebalance portfolios, or participate in DeFi strategies without worrying about expensive transaction costs.
Pulse Wallet also focuses on simplicity and security, making it accessible for both experienced crypto users and newcomers who want a reliable way to manage assets within the growing PulseChain ecosystem.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency markets are highly volatile, and readers should conduct their own research before making any investment decisions. Pulse Wallet does not provide financial advice and is not responsible for any investment outcomes based on the information presented in this article.