Bitcoin retreated slightly on Thursday after briefly climbing above $73,000 during a broader rebound in global risk assets.

Bitcoin fell as much as 1.8% after gaining roughly 8% during Wednesday’s U.S. trading session. The digital asset was trading near $72,500 in London morning hours after reaching an intraday high of $73,544 during Asian trading.

The move comes as financial markets stabilize following sharp volatility triggered by the escalating conflict involving the United States, Israel, and Iran earlier in the week.

Risk Assets Rebound Across Global Markets

Global equities rebounded sharply alongside cryptocurrencies as investor sentiment improved.

South Korea’s benchmark KOSPI Index surged roughly 11%, while Japan’s Nikkei 225 advanced about 4.2%.

Bitcoin’s rally mirrored the broader recovery in risk assets after markets were initially rattled by geopolitical tensions and concerns about disruptions to global energy supplies.

Crypto market participants say the rebound reflects improving sentiment after investors digested the early shock of the conflict.

Crypto Sentiment Turns More Positive

Industry analysts pointed to several indicators suggesting renewed bullish momentum in the digital asset space.

A premium for Bitcoin on Coinbase — which had briefly turned into a discount earlier in the week — has now reversed, signaling stronger demand from U.S. investors.

Market observers say that shift reflects a broader improvement in sentiment across the cryptocurrency ecosystem.

At the same time, Bitcoin has recently outperformed Gold, a traditional safe-haven asset that is often compared to the digital currency.

Since last Friday, gold prices have declined nearly 2%, while Bitcoin has gained more than 10% over the same period.

ETF Inflows Signal Strong Investor Interest

Investor demand for Bitcoin also remains strong through exchange-traded funds.

More than $1.1 billion has flowed into U.S. Bitcoin ETFs so far in March, including roughly $462 million in inflows on Wednesday alone.

These investment vehicles are widely viewed as a key indicator of institutional confidence in the cryptocurrency market.

Despite the recent rebound, analysts caution that crypto markets remain highly sensitive to broader financial market volatility and geopolitical developments.