Bitcoin recovers higher as metals stabilise and Palantir calms AI worries

Bitcoin has rebounded from yesterday’s 74.5k low, trading over 4% higher at around 78k at the time of writing. The recovery comes as risk sentiment improves following a rebound in precious metals and stronger-than-expected earnings from AI-focused firms. Accumulation by Strategy alongside renewed ETF inflows has also helped lift prices. 

Bitcoin slid to a 2025 low earlier in the week as a sharp sell-off in the precious metals market rattled investors across both traditional and digital assets. Gold and silver are rebounding today after last week’s record-setting volatility, which saw gold plunge 13% in two sessions and silver drop 31% across Friday and Monday. The stabilisation in metals appears to be helping restore broader market confidence, with gold up 6% and silver gaining 8%. 

Palantir earnings help tech rise, support crypto 

Sentiment has also been supported by a rebound in tech stocks after Palantir delivered strong earnings, sending its shares 12% higher in pre-market trade. The results eased concerns around the AI trade, helping the Nasdaq 100 outperform the Dow Jones, with futures up 0.4%. Bitcoin, which often trades in line with risk appetite and the tech-heavy Nasdaq, has benefited from the improved tone. 

Looking ahead, earnings from AMD, Alphabet, and Amazon will serve as a further test for the AI narrative and could influence both equities and crypto. Attention will also turn to a Senate vote aimed at ending the partial government shutdown. While the vote is expected to pass, further delays could renew pressure on risk assets. 

BTC ETFs demand improves 

Meanwhile, spot Bitcoin ETFs recorded $561.9 million in net inflows on Monday, snapping last week’s run of outflows and marking the strongest daily inflow since mid-January. Sustained inflows will likely be required for the recovery in Bitcoin to gain traction beyond a near-term relief rally. 

Bitcoin’s rebound appears driven by improving cross-asset sentiment, but sustaining the move will depend on continued stability in metals, strength in tech earnings, and persistent ETF inflows. 

Bitcoin technical analysis

BTC/USDT faced rejection at the 50 SMA and rebounded lower before finding support at 75k, a 9-month low. From here the price has recovered to 78k, bringing the RSI out of oversold territory. The long lower wick on  Monday’s candle suggests there was little selling demand at the lower levels and could indicate the end of the downtrend or at least a pause for now. 

To extend the recovery, buyers would need to rise above resistance at 80k, the round number, and the November low to bring 85k into focus. It would take a rise above 85k to negate the near-term selloff. 

Should BTC/USDT break support at 75k, this would open the door to a deeper selloff toward 70k and 65k, the September 2024 high.