Bitcoin retreated on 5 March after a powerful rally lost momentum, falling from a brief peak near $74,000 and stabilising close to the $71,000 level during the trading session.
The pullback ended a strong three-day run in which the cryptocurrency had climbed almost 10 percent and briefly reclaimed the psychologically important $74,000 threshold.
Market data showed the asset slipping to an intraday low of $70,902 before buyers stepped in, allowing the price to consolidate slightly above $71,000.
The move represented roughly a 3 percent decline over the past 24 hours as traders locked in profits after the rapid advance earlier in the week.
Despite the short-term decline, bitcoin continues to hold a weekly gain of more than 6 percent, outperforming many traditional assets during a period of geopolitical uncertainty.
The rally had initially been fuelled by growing concerns surrounding escalating tensions in the Middle East, which pushed some investors toward alternative assets such as cryptocurrencies.
Global financial markets, however, displayed mixed reactions as bitcoin cooled while several major Asian and European indices staged strong rebounds.
South Korea’s Kospi index led the recovery with a remarkable surge of about 9.6 percent, rebounding sharply after suffering its worst single-day drop on record just a day earlier.
Analysts said the rapid turnaround followed the South Korean government’s announcement of a massive $68 billion market stabilisation fund aimed at restoring investor confidence.
Japan’s Nikkei 225 also posted gains during the session, closing roughly 1.9 percent higher as regional markets attempted to recover from earlier volatility.
European markets echoed the cautious optimism seen in Asia, although the recovery was less dramatic compared with the sharp rebound in South Korea.
In contrast, United States equity markets struggled to follow the global rebound, with technology shares leading the decline during midday trading.
By around 12:45 p.m. Eastern Time, the Nasdaq index had dropped approximately 248 points, representing a fall of about 1.09 percent.