Bitcoin Reclaims $66,000 as Risk Appetite Returns Ahead of Key U.S. Data

Bitcoin has staged a notable rebound, after the price of the crypto asset climbed more than $2,000 on Tuesday, to reclaim the $66,000 level as traders adopted a risk-on posture ahead of the State of the Union address by Donald Trump.

The recovery followed Monday’s $203.8 million in outflows and helped push weekly flows for crypto-linked investment products back into positive territory.

The upward price movement came after five consecutive weeks of net redemptions totaling $3.8 billion, underscoring the scale of recent investor withdrawals from digital asset funds.

According to market participants, the move reflected renewed positioning ahead of earnings from Nvidia and a broader relief bounce after tariff tensions and legal uncertainty involving the U.S. Supreme Court unsettled markets the prior week.

During an address, U.S President Trump described the U.S. economy as a “turnaround for the ages,” highlighting tax cuts, tariffs, and easing inflation pressures while asserting that incomes are rising and economic strength is accelerating.

Despite the optimistic tone, analysts noted that macroeconomic signals and corporate catalysts held greater immediate relevance for digital asset markets.

Bitcoin is currently trading near $65,554 during the session, reflecting a cautious recovery after weeks of sustained weakness. Recent disclosures indicate institutional investors trimmed exposure to Bitcoin exchange-traded funds in the fourth quarter of 2025, suggesting selective repositioning rather than broad risk accumulation.

However, longer-term adoption trends remain firm. A report from River stated that Bitcoin adoption continued expanding throughout 2025, even as price performance lagged.

Institutions collectively accumulated approximately 829,000 BTC during the year, including purchases by corporations, governments, funds, and ETFs. A poll on Stocktwits showed that crash is unlikely to retail traders from buying the dip. Nearly 60% of respondents say they are likely to buy more Bitcoin if its price drops further.

The data reinforces the view that structural adoption is progressing independently of short-term price cycles. Market attention is now turning to upcoming U.S. Initial Jobless Claims data, a key economic indicator closely watched for signals about monetary policy direction from the Federal Reserve.

Historically, Bitcoin has often rallied following jobless claims releases, and analysts are monitoring whether the pattern persists. On February 19, jobless claims came in at 206,000 below expectations after which Bitcoin gained nearly 2.7% to reach $67,518.

Similar reactions have occurred multiple times this month, reinforcing the perceived link between labor market signals and crypto sentiment. Technical indicators show Bitcoin attempting to stabilize above former support near $65,000, while the $60,000 level remains a critical downside threshold.

Market monitoring firm Material Indicators reported a $4.5 million spot purchase by large investors, suggesting continued whale participation during the recovery phase. However, resistance remains clustered near $66,500–$66,600, with price action still trading below the 100-hour moving average.

Outlook

Near-term momentum will likely hinge on macroeconomic data and interest rate expectations. A sustained hold above $65,000 could open the path toward a retest of the $70,000 level, particularly if labor market data weakens enough to support expectations of policy easing.

Conversely, a decisive break below $60,000 would signal renewed downside risk toward the low-$50,000 range. Despite volatility, institutional accumulation trends and expanding adoption metrics suggest that Bitcoin’s long-term structural trajectory remains constructive, even as short-term price action continues to respond sharply to macroeconomic catalysts.