Bitcoin briefly moved above $74,400, but the strength of the rally is still under debate. On Tuesday, major crypto exchanges saw roughly $609 million in derivatives liquidations. Shorts accounted for $485.6 million of that total, pointing to a classic short squeeze that pushed prices higher in a short burst before a pullback followed.
Fast liquidation-led rallies often reverse just as quickly. Dominick John, an analyst at Zeus Research, said price moves driven by liquidation squeezes usually do not last without genuine underlying demand and often fade within days to several weeks.
Spot Bitcoin ETFs Extend Their Inflow Streak
ETF flows are offering a different signal. Since March 9, U.S. spot Bitcoin ETFs have posted net inflows for six straight sessions, bringing in a combined $962.8 million. Monday alone added $199.4 million in fresh capital.
BlackRock’s iShares Bitcoin Trust led with $139.4 million, while Fidelity’s Wise Origin Bitcoin Fund attracted $64.5 million. Over the same stretch, Bitcoin rose from $65,960 to about $74,250, a gain of 12.5%. Presto Research said ongoing ETF inflows and continued institutional accumulation have been central to the move. The prior week also brought $767.3 million in net ETF inflows, marking the third consecutive week of accumulation.
Oil Prices and Inflation Anxiety Keep Pressure on Markets
Macro risk is still in the picture. Rising tensions involving the United States, Israel, and Iran have added uncertainty across global markets. Brent crude moved above $103 per barrel, while WTI reached $96.03. That jump in energy prices has revived inflation concerns and affected how capital is being allocated across both traditional markets and digital assets.
The Strait of Hormuz, which handles about 20% of global oil shipments, has become another point of concern as maritime disruption intensifies. The report said President Trump promoted international cooperation to stabilize the waterway and respond to disruptions linked to Iranian restrictions.
Sentiment Improves as Traders Watch the Fed
On-chain and sentiment indicators have also shifted. Blockchain analytics platform Santiment said rising market speculation around negotiations involving the three countries helped lift Bitcoin above $74,400 for the first time in more than a month. Social sentiment readings showed stronger demand for risk assets during a period of diplomatic uncertainty.
On Tuesday, the Crypto Fear & Greed Index rose 5 points to 28, leaving the “Extreme Fear” zone for the first time since January. Attention is now turning to the Federal Reserve’s upcoming rate decision, with the policy outlook and inflation commentary expected to shape risk appetite. In the wider digital asset market, spot Ethereum ETFs drew $160.8 million and ETH rose 3.28% to $2,315, showing that investor participation has remained active beyond Bitcoin.