World’s largest cryptocurrency rebounds 11% in a single session as risk appetite returns, though analysts warn deeper corrections remain possible.

Bitcoin rebounded strongly on Friday, climbing back above the $70,000 mark just one day after coming close to breaking below $60,000, in one of the most dramatic reversals seen in the cryptocurrency market this year.

The world’s largest digital asset rose as much as 11 percent on the day, reaching an intraday high of $71,458 before paring gains slightly. By mid-afternoon in New York, bitcoin was trading around $70,400, according to market data.

The bounce followed a brutal selloff on Thursday, when bitcoin plunged roughly 15 percent in a single session, weighed down by forced liquidations, selling pressure from exchange-traded funds, and heightened volatility spilling over from equities and precious metals.

Liquidations and ETF selling drove Thursday’s plunge

Thursday’s decline pushed bitcoin below $61,000 at its lowest point, triggering stop-loss orders and margin calls across leveraged trading platforms. Analysts noted that outflows from bitcoin-linked ETFs accelerated the selloff, compounding losses as risk sentiment deteriorated globally.

Crypto markets have struggled in recent weeks amid broader turbulence across asset classes, including sharp moves in gold and silver and renewed uncertainty in global equity markets.

Despite Friday’s rebound, bitcoin remains significantly below its record high of more than $126,000 reached last October, representing a decline of over 45 percent from its peak.

Risk appetite returns as equities rally

Bitcoin’s recovery coincided with a broad rebound in US stocks, signalling a temporary return to risk-on sentiment after a highly volatile week. The Dow Jones Industrial Average surged nearly 2 percent, while the S&P 500 and Nasdaq Composite gained around 1.4 percent and 1.5 percent, respectively.

Technology stocks led the advance, with major names such as Nvidia and Microsoft rebounding sharply after suffering steep losses earlier in the week. The rally helped stabilise sentiment across speculative assets, including cryptocurrencies.

Market participants pointed to easing fears around artificial intelligence-driven disruption and stretched valuations in the tech sector as one factor behind the renewed buying interest.

Bargain hunters step in, but caution remains

Some investors appear to be selectively accumulating bitcoin after its steep correction, betting that the selloff had gone too far in the short term. However, analysts remain divided over whether the rebound marks a durable bottom or merely a temporary relief rally.

Research firm 10X Research warned that bitcoin’s failure to hold above key technical levels earlier this week could leave the market vulnerable to further downside later in the year.

“I think we are going to have a short counter-trend rally that may go sideways or bounce modestly,” said Markus Thielen, founder of 10X Research. “But during the summer, we could still see another low.”

According to the firm’s projections, bitcoin could fall toward the $40,000 to $50,000 range if macroeconomic pressures and risk aversion resurface.

Volatility likely to remain elevated

The latest price swings highlight the fragile state of crypto markets, which continue to be heavily influenced by global liquidity conditions, investor sentiment, and cross-asset volatility.

While Friday’s rebound has eased immediate fears of a deeper collapse, traders and long-term investors alike are bracing for continued turbulence, particularly as central bank policy uncertainty and geopolitical risks remain unresolved.

For now, bitcoin’s ability to hold above the psychologically important $70,000 level will be closely watched as a key test of market confidence in the weeks ahead.