Opinion: The recent rise of BTC was mainly driven by short covering and retail investor funds, rather than a demonstration of strong market confidence.

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Deep Tide TechFlow News, March 5th, according to DL News, Bitcoin price has increased by 5% in the past 24 hours, breaking through $72,000. Analysts say this price rise is mainly driven by short covering and retail capital flows, rather than market confidence. Nansen research analyst Nicolai Søndergaard pointed out that Bitcoin has been fluctuating between $60,000 and $70,000 over the past month and has not yet confirmed a breakout.

Meanwhile, Bitcoin exchange-traded funds (ETFs) attracted $462 million in inflows. Data from DefiLlama shows that March is expected to be the first month since October with a positive net capital inflow. Bitfire CEO Livio Weng remains optimistic, believing that this rebound highlights Bitcoin’s value as a safe-haven asset, especially amid tense geopolitical tensions in the Middle East.

BTC-2.22%
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