Key takeaways:
Bitcoin sits above $71,000 as weak US economic data and the US and Israel-Iran war drive investors toward scarce assets.
Tech stocks’ correlation to BTC and rising oil prices suggest that the 5-month correction from $126,000 might not be over.
Bitcoin (BTC) jumped above $73,000 on Friday, successfully locking in the 70,000 support for the week. These gains occurred as the US reported weak economic activity data, triggering concerns of an impending recession while the war in Iran continues to drag on.
While socio-economic events and institutional inflows might have led to Bitcoin’s bullish momentum, traders are still questioning if the bear market has actually ended.
Economic turmoil, growing investor appetite for BTC back Bitcoin’s breakout
The US economy grew by a mere 0.7% between October and December 2025, which was a significant downgrade from previous estimates, according to a US Commerce Department report released on Friday. While the final report is due April 9, the risks of a recession throughout 2026 have increased, driving investors away from US Treasuries.
US 10-year Treasury yield vs. Bitcoin/USD. Source: TradingView
Yields on the US 10-year Treasury surged to 4.26%, meaning investors are demanding a higher return to hold those assets. The mere risk of additional liquidity causes traders to seek shelter in scarce assets. This partially explains why the S&P 500 traded just 5% below its all-time high despite the worsening economic conditions.
WTI oil futures (left) vs. S&P 500 futures (right). Source: TradingView
On Monday, the S&P 500 futures plummeted to their lowest levels in over three months after oil prices briefly surged to $119.50. The US decision to temporarily authorize the purchase of Russian oil stranded at sea helped to cool off some of the risks. This move, announced by US Treasury Secretary Scott Bessent on Friday, eased the markets’ short-term concerns.
US-listed spot Bitcoin ETF daily net flows, USD. Source: CoinGlass
Institutional demand for Bitcoin has also been signaled as a potential driver for the recent bullish momentum. Spot exchange-traded funds (ETFs) faced four…
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