Bitcoin rebounds to $65,660 after sharp reversal amid geopolitical concern

• Bitcoin trades near $67,219 after early March 9 price drop
• US spot Bitcoin ETFs saw $568 million net inflows in two weeks
• Key support for Bitcoin is $63,700; volatility expected ahead

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Bitcoin prices fell sharply in the early March 9 trade at $65,660, but recovered some of those losses to trade just above $67,219 as of 9:30 am IST, up 0.29 percent in the last 24 hours.

"The recent pullback comes after a sharp reversal in U.S. spot Bitcoin ETF flows and growing concerns around inflation and geopolitical tensions," said Riya Sehgal, Research Analyst at Delta Exchange.

She argued that the surge in oil prices has weighed heavily on both cryptocurrencies and equities. Oil prices have started the week nearly 20 percent higher, driven by the ongoing conflict involving the US, Israel, and Iran.

"On the institutional side, the US spot Bitcoin ETFs recorded $568.45 million in inflows over the past two weeks, following a previous $787.31 million gain. However, daily flows have been volatile, with notable outflows toward the end of the week," said Sehgal.

The analyst estimates that from a technical perspective, the $63,700 level remains a critical support for Bitcoin. A decisive break below this level could push the price toward the next support zone near $57,000.

Other cryptocurrencies followed the cue. Ethereum was up 1.52 percent, BNB 0.97 percent, XRP 0.05 percent, Solana 0.84 percent, TRON 1.42 percent, Dogecoin 1.33 percent, and Cardano 0.44 percent over the last 24 hours.

Here's how prices of the top-10 cryptocurrencies have moved.

What bitcoin's price rise mean for investors?

Bitcoin is trading near $66,000 after profit-taking by short-term holders intensified selling pressure near the $74,000 level.

"Bulls must defend the $63,500 support to avoid further downward pressure," said Akshat Siddhant, Lead quant analyst at Mudrex, adding that over 27,000 BTC in realised profits moved to exchanges by STHs while bulls struggled to absorb the selling pressure.

Outflows from Bitcoin ETFs in the last two days further contributed to the weakness. However, weekly ETF flows are still positive at $568 million, marking a second straight week of net inflows since early October.

Vikram Subburaj, CEO at Giottus, advises that with key macro triggers such as the US CPI release (March 11) and the Federal Reserve meeting (March 17-18) approaching, volatility could rise in the near term. "Investors should therefore avoid aggressive leverage and focus on disciplined accumulation near structural support zones. Maintaining liquidity to respond to macro-driven price swings. The broader market remains intact, but positioning should prioritise risk management."