Bitcoin broke above $70,000 on Friday, just one day after narrowly avoiding falling below the key $60,000 mark, as part of a stunning rebound.
The token rose to as much as $71,458.01 on Friday, up more than 11% on the day. It was last trading at $70,411.33 as of 3:16 p.m. ET.
The forceful rebound followed the flagship cryptocurrency's dive below $61,000 on Thursday, marking a 15% plunge on the day. It comes as some investors are snapping up bitcoin after its more than 50% decline from its record high above $126,000 hit last October.
The reversal comes as stocks also rose on Friday, suggesting the market could close on a more positive note following a very volatile week. The Dow Jones Industrial Average advanced 918 points, or 1.9%. The S&P 500 added 1.4%, while the Nasdaq Composite traded up 1.5%.
Investors' rotation back into risk-on assets drove stocks' surge amid fading fears over the threats posed by artificial intelligence technologies' to software firms. Several BigTech names rebounded, including Nvidia and Microsoft, which rose 6% and 1%, respectively. Those gains marked a stunning reversal from their near double-digit percentage point drops this week.
Could bitcoin go lower again?
Bitcoin is now trading close to its critical $70,000 level, sitting 45% off its all-time high.
However, analysts said that bitcoin's earlier drop below $70,000 could signal further downside.
One firm, 10X Research, estimates bitcoin could go as low as $50,000, after a potential small bounce soon, Thielen said.
"I think we are going to have a little counter-trend rally that might go sideways or bounce a little bit," Thielen said. "But I think during the summer we make another low."