The rebound puts Bitcoin’s total market capitalization back near $1.3 trillion, based on a circulating supply of roughly 19.6 million coins. That recovery reinforces Bitcoin’s dominance in the broader crypto market, where it continues to command more than 50% of total digital asset market share.
Strong U.S. Demand Drives Price Action
Market data shows that a bulk of the recent buying pressure originated during U.S. trading hours, a signal that American institutional desks and large-scale investors are stepping back in. Over the past 24 hours, Bitcoin trading volume climbed above $30 billion globally, reflecting increased liquidity and stronger participation compared to earlier in the week.
Traders report that bids stacked aggressively around the $64,500-$65,000 range, forming a short-term support base. Once price momentum pushed past $65,800, algorithmic trading systems and breakout traders added fuel to the rally, helping Bitcoin retake $66,000.
From a percentage standpoint, the move from $64,500 lows to $66,000 represents a roughly 2.3% intraday recovery, a solid swing in a high-cap asset of this size.
Institutional Positioning Signals Confidence
Institutional participation remains one of the most important narratives in this cycle. Since the approval of U.S. spot Bitcoin exchange-traded products in 2024, institutional exposure to Bitcoin has expanded significantly. Fund managers, hedge funds, and retirement portfolios now treat Bitcoin less like a fringe bet and more like a macro-aligned alternative asset.
On-chain analytics also show a steady decline in exchange reserves over recent weeks, suggesting investors are moving coins into cold storage rather than preparing to sell. Historically, declining exchange balances correlate with accumulation phases and reduced immediate sell pressure.
Long-term holders now control an estimated over 70% of circulating supply, reinforcing the argument that Bitcoin’s structural supply remains tight even during volatile pullbacks.
Technical Levels Traders Are Watching
From a technical analysis perspective, reclaiming $66,000 is more than psychological. The level has acted as both support and resistance throughout recent consolidation. Holding above it could open the door to a retest of the upper $67,000-$68,000 band.
Bitcoin remains below its all-time high set earlier in this cycle, but it continues to trade well above its 200-day moving average a long-term bullish indicator widely used by institutional analysts.
Volatility, however, remains elevated. Bitcoin’s average 30-day annualized volatility has hovered near 40-50%, significantly higher than traditional equities. That means sharp swings both up and down remain part of the game.
Macro Factors Still in Play
Broader macroeconomic signals continue to shape crypto flows. Investors are closely watching U.S. inflation data, Federal Reserve policy cues, and risk appetite across equity markets. Bitcoin has increasingly shown correlation with tech-heavy indices during risk-on periods, while still retaining characteristics of a long-term inflation hedge narrative.
Despite short-term fluctuations, Bitcoin’s fixed supply cap of 21 million coins remains central to its investment thesis. With nearly 94% of total supply already mined, scarcity dynamics continue tightening over time, especially after the most recent halving event reduced block rewards.
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