Analyst: The current bitcoin rally is driven by position resetting and reduced supply elasticity

BlockBeats News, March 4, according to Decrypt, the bitcoin rebound continues, breaking through $71,000 for the first time in three weeks. However, whether this upward trend can be sustained still depends on the overall liquidity environment and geopolitical risks.

Altura co-founder and CEO Ranveer Arora stated: "ETF capital inflows continue to provide structural buying support, but the more direct driving factors seem to be position resets, reduced supply elasticity after the halving, and improved liquidity expectations. In the crypto market, once selling pressure is absorbed and positions start to rotate, leverage and derivatives capital flows often accelerate the price discovery process." Arora believes that bitcoin's performance remains closely tied 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."

LetsExchange Chief Product Officer Alex J. said that bitcoin's rise to $71,000 was "mainly driven by escalating geopolitical tensions and increased uncertainty." When asked whether this round of rebound can be sustained, Alex J. replied: "Most likely not. But I also expect the price will not drop sharply." He explained that when the global financial system experiences severe turmoil and significantly affects liquidity flows between different assets, bitcoin finds it difficult to compete with conservative assets like gold.