Risk sentiment returns, and Bitcoin temporarily breaks through 74K

Boosted by the US service sector's economic growth reaching its fastest pace since mid-2022 and the price index dropping to nearly a one-year low, US stocks led the rally with technology stocks. Bitcoin (BTC) surged past 67K yesterday afternoon and briefly broke through 74K this morning, hitting its highest point since early February.

Risk sentiment returns, led by tech stocks

Although the timeline for military actions remains uncertain, President Trump expressed confidence in potential military strikes against Iran. Tehran attacked Israel and Gulf countries, while Israel and US forces carried out strikes on Iranian targets. The US sank an Iranian vessel in international waters. Tehran dismissed reports that it had contacted the US to negotiate an end to the conflict, calling such claims "pure lies."

Despite war concerns and fears over artificial intelligence creating significant headwinds for risk assets, Goldman Sachs' Peter Oppenheimer stated that strong economic fundamentals and robust earnings suggest that the pullback will be limited.

Two strong economic data releases on Wednesday also boosted investor sentiment. ADP reported that private sector employment in February exceeded expectations. Additionally, US non-manufacturing growth last month outperformed forecasts, and inflation pressures have eased. Driven by the fastest service sector growth since mid-2022 and the price index dropping to a nearly one-year low, US stocks rose yesterday, led by tech stocks.

Bitcoin briefly broke 74K, with nearly $600 million in liquidations across the network

Bitcoin surged past 67K yesterday afternoon and briefly exceeded 74K this morning, reaching its highest since early February.

The cryptocurrency market rose 6.42% in 24 hours, with a market cap of $2.48 trillion. Bitcoin's effective break above $70,000 triggered a massive short squeeze, with nearly $600 million in positions liquidated within 24 hours, including $480 million in longs, mostly in Bitcoin.

Crypto-related stocks outperformed the broader market rebound, with MicroStrategy (MSTR) up over 34%, Coinbase (COIN) up about 15%, and Circle (CRCL) up more than 5%.

So far this week (only two days counted), over $680 million has flowed into spot Bitcoin ETFs, indicating active investor re-entry into the market.

This article, "Risk sentiment returns, Bitcoin briefly breaks 74K," first appeared on Chain News ABMedia.