Bitcoin rises on position reset and reduced supply elasticity, analysts say

ChainCatcher report, according to Decrypt, the Bitcoin rally continues, breaking above $71,000 for the first time in three weeks, but whether this upward momentum can be sustained still depends on the overall liquidity environment and geopolitical risks. Ranveer Arora, Co-founder and CEO of Altura, said: “ETF inflows continue to provide structural buying support, but the more immediate drivers appear to be position rebalancing, reduced supply elasticity post-halving, and improved liquidity expectations. In the crypto market, once selling pressure is absorbed and positions begin to rotate, leverage and derivatives flows often accelerate price discovery.” Arora believes Bitcoin’s movement remains closely tied to global liquidity conditions. He noted that Bitcoin’s performance “is less like a traditional defensive asset and more like a high-beta expression of global liquidity conditions.” Alex J., Chief Product Officer at LetsExchange, said Bitcoin’s rise to $71,000 is “primarily driven by escalating geopolitical tensions and rising uncertainty.” When asked whether this rally can be sustained, Alex J. replied: “Unlikely. But a significant price drop is also not expected.” He explained that when the global financial system experiences severe disruption and significantly alters liquidity flows among different assets, Bitcoin struggles to compete with conservative assets like gold.