Bitcoin staged a swift rebound after a weekend decline, climbing back above the $70,000 level early Tuesday in East Asia trading as oil prices cooled and institutional demand helped steady the market.

The largest cryptocurrency had dropped to around $65,000 during the weekend as geopolitical tensions sparked a wave of risk aversion across global markets. However, the selloff proved short-lived, with bitcoin stabilizing and then recovering as investors reassessed the broader market impact.

The recovery came as crude oil retreated and U.S. equities moved higher. Earlier Monday, disruptions in the Strait of Hormuz had pushed key oil benchmarks — West Texas Intermediate and Brent Crude — above $100 per barrel for the first time in years, prompting a risk-off reaction across financial markets. Bitcoin initially slipped alongside other risk assets but quickly found support in the mid-$60,000 range as traders digested the geopolitical developments.

Market maker Enflux said the cryptocurrency demonstrated resilience despite the sharp moves in energy markets.

“Bitcoin briefly slipped below $66,000 during the initial risk-off wave but quickly stabilized between $66,000 and $68,000,” the firm said in a note to CoinDesk. “Compared with equities and even some traditional hedges, it held up relatively well.”

Institutional inflows have also continued to provide support. U.S. spot bitcoin exchange-traded funds attracted roughly $568 million in net inflows last week, following $787 million the week before, according to data from SoSoValue. Those inflows pushed cumulative net investments across the products beyond $55 billion.

Preliminary figures from SoSoValue suggest Monday’s inflows were about $57 million, though complete data from all ETF issuers had not yet been reported at the time of publication.

Meanwhile, on-chain and derivatives indicators suggest the market is gradually stabilizing following the recent volatility, although analysts say investor conviction remains limited.

“Overall, conditions are stabilizing, with momentum, ETF demand, and profitability metrics improving modestly,” analysts at Glassnode said in a recent report. “However, capital flows remain relatively soft, speculative activity is still subdued, and broader market conviction has yet to fully return.”

Sentiment in prediction markets has also shifted more bullish as bitcoin reclaimed the $70,000 mark. On Polymarket, the odds of BTC reaching $75,000 in March climbed to about 56% on Monday, up from roughly 34% a day earlier, highlighting how quickly trader expectations changed as the cryptocurrency recovered.