Analyst: The recent rise in Bitcoin is driven by position resetting and reduced supply elasticity

According to Decrypt, the Bitcoin rebound continues, breaking through $71,000 for the first time in three weeks, but whether this upward trend can be sustained still depends on the overall liquidity environment and geopolitical risks.

Ranveer Arora, co-founder and CEO of Altura, stated, "The continuous inflow of ETF funds provides structural buying support, but the more direct driving factors seem to be position resets, reduced supply elasticity post-halving, and improved liquidity expectations. In the crypto market, once selling pressure is digested and positions start to rotate, the flow of leverage and derivatives often accelerates the price discovery process." Arora believes that Bitcoin's performance is still closely related to the global liquidity environment. He pointed out that Bitcoin's performance "is less like a traditional defensive asset and more like a high-beta expression of global liquidity conditions."

Alex J., Chief Product Officer of LetsExchange, stated that Bitcoin's rise to $71,000 is "mainly driven by escalating geopolitical tensions and rising uncertainty." When asked whether this rebound can be sustained, Alex J. said, "It's unlikely. But the price is also not expected to drop significantly." He explained that when the global financial system experiences severe turmoil, significantly affecting the liquidity flows between different assets, Bitcoin struggles to compete with conservative assets like gold.