Analyst: This Round of Bitcoin Rally Driven by Position Reset and Reduced Supply Elasticity

On March 4, Decrypt reported that Bitcoin’s ongoing rally pushed it above $71,000 for the first time in three weeks. Still, its upward momentum hinges on the broader liquidity environment and geopolitical risks. Altura co-founder and CEO Ranveer Arora noted: “ETF inflows keep providing structural buying support, but more direct drivers appear to be position adjustments, reduced post-halving supply elasticity, and improved liquidity expectations. In crypto, once selling pressure eases and positions rotate, leverage and derivative flows often speed up price discovery.” Arora added Bitcoin’s trend remains tightly linked to global liquidity—calling it a “high-beta proxy for global liquidity, not a traditional defensive asset.” LetsExchange Chief Product Officer Alex J. said Bitcoin’s climb to $71,000 was “largely fueled by rising geopolitical tensions and growing uncertainty.” When asked if the rebound will last, Alex J. replied: “Unlikely—but we don’t expect a sharp drop either.” He explained that when global financial markets face severe turbulence and disrupt cross-asset liquidity flows, Bitcoin can’t compete with safe-havens like gold.