Bitcoin stabilizes above $70,000, IEA may release the largest-ever crude oil reserves, global risk asset sentiment improves

March 11 News: Bitcoin has recently regained the $70,000 level, with market risk appetite improving alongside energy market movements. Data shows that Bitcoin briefly reached a high of $71,612 on Tuesday evening, then retreated to around $70,036 during Asian trading hours, but still recorded approximately a 2.5% increase this week. From the low near $66,000 on Monday, the largest two-day gain once reached about 8.5%.

Changes in market sentiment are closely linked to energy market dynamics. The Wall Street Journal reports that the International Energy Agency (IEA) is discussing releasing the largest strategic oil reserves in history, potentially exceeding the 182 million barrels released after the Russia-Ukraine conflict in 2022. The proposal aims mainly to ease supply pressures caused by production cuts in the Persian Gulf region. Since the outbreak of the Iran conflict, oil supply in the area has decreased by about 6%, driving up prices for jet fuel and liquefied petroleum gas.

With expectations of potential supply releases, Brent crude oil prices fell below $90 per barrel on Wednesday, after a sharp decline of about 11% in the previous trading day. The decline in energy prices is seen as an important signal of easing inflation pressures and suggests that global liquidity conditions may not tighten further, providing some support for risk assets including cryptocurrencies.

ZeroStack CEO Daniel Reis-Faria stated that Bitcoin breaking above $70,000 indicates buyers are attempting to push the market out of recent consolidation, and the previous reduction in leverage has made the current market structure more stable. However, he noted that the key issue remains whether BTC can sustain this level, or else the price could revert to previous trading ranges.

On the technical side, analysis firm FxPro pointed out that Bitcoin has formed a series of higher lows since late February, which is seen as a sign of growing buyer confidence. However, $73,000 remains an important resistance level, close to last week’s high and the 50-day moving average.

Other major cryptocurrencies performed relatively steadily. Ethereum remains around $2,034, up about 2.8% this week; BNB is roughly flat; XRP slightly increased to $1.38; Solana around $86, showing weaker performance over the past seven days. Influenced by Elon Musk-related discussions, Dogecoin rose about 1%.

The market’s next focus is on the Federal Reserve policy meeting scheduled for March 17-18. If oil prices stay below $90, inflation pressures may ease, opening space for future rate cuts. Currently, Bitcoin’s 90-day correlation with the S&P 500 remains around 0.78, and Fed policy signals could still directly impact the crypto market.