Bitcoin moved back above $71,000 on Thursday after an earlier selloff briefly pushed prices below the $70,000 level, as global markets showed tentative signs of stabilizing.

The rebound came as the sharp decline in technology stocks began to ease. Futures tied to the Nasdaq 100 edged higher after two heavy sessions that erased the index’s gains for the year, while European equities steadied and Asian markets trimmed losses.

Bitcoin had dropped as much as 7% over the previous 24 hours as investors cut exposure to risk assets linked to growth and leverage. The move coincided with renewed pressure in precious metals, with silver plunging as much as 17% and extending a steep reversal from last month’s record highs. Gold also weakened, highlighting the swift unwinding of speculative positions across markets.

In crypto markets, analysts say the move back above $71,000 appears driven more by short covering than by new buying interest. Although trading volumes remain elevated, spot market demand has softened, suggesting limited follow-through behind the rebound.

Further signaling caution, stablecoin balances on exchanges have continued to drift lower, indicating that fresh capital remains largely on the sidelines rather than stepping in aggressively during dips.

Macro uncertainty continues to weigh on sentiment. Investors are reassessing expectations around US interest rates amid speculation over Federal Reserve leadership and the risk of a stronger dollar — dynamics that typically pressure assets like bitcoin, which tend to perform best in periods of abundant liquidity.

Some firms remain cautious. Galaxy Digital has warned that without a clear catalyst, bitcoin could still revisit lower levels if selling pressure returns.

Others argue the bulk of the drawdown may already be complete, with some estimates pointing to a potential bottom in the low-to-mid $60,000 range.