Bitcoin climbed back above **$70,000** after dipping near $60,000 earlier in the month, with broader crypto markets also rising.

### What’s driving the move

- A **cooler-than-expected U.S. inflation** reading improved the market’s outlook for **earlier interest-rate cuts**.

- Rate-cut probabilities on prediction markets rose, supporting a broader risk-on bounce.

### Under the surface: stress is still visible

Despite the recovery, CoinDesk reports that:

- The **Crypto Fear & Greed Index** remained in **‘extreme fear’** territory.

- Analysts cited **$8.7B in realized bitcoin losses** in the prior week, with comparisons to major prior capitulation events.

- Treasury-style bitcoin holders were sitting on large unrealized losses, though the rebound reduced the total.

### Why it matters

This setup—macro relief rally while sentiment stays deeply negative—often produces **volatile, headline-driven trading**. If selling pressure is truly exhausted, supply may rotate to longer-term holders over time; if not, rallies can become opportunities for traders to de-risk.

**What to watch next:** liquidity/volume levels, follow-through early next week, and whether sentiment indicators begin to normalize alongside price.