Bitcoin’s resurgence following Monday’s turmoil has accelerated with unforeseen velocity, encapsulating a dramatic market turn. On Thursday, the digital asset catapulted nearly 12% to reach $61,720, registering the most substantial single-day surge since February 28, 2022—when the cryptocurrency had previously experienced a 14% leap, according to data from TradingView. The overall market capitalization for cryptocurrencies swelled by 11% to $2.11 trillion, representing the most significant spike since November 10, 2022.

The bulk of Thursday’s gains materialized during the U.S. trading hours, bolstered by unexpectedly positive U.S. jobless claims data, which alleviated concerns of an impending recession and propelled U.S. equities upward. Simultaneously, Wall Street’s volatility index, VIX, retreated to 23, offering a favorable environment for risk-oriented assets, including cryptocurrencies. A notable factor was the Japanese yen, whose rally faltered as the Bank of Japan resisted the notion of imminent interest rate hikes.

U.S.-listed spot exchange-traded funds (ETFs) saw a remarkable inflow, amassing $194.6 million in investor capital—the highest figure recorded since July 2022, according to Farside Investors. BlackRock’s IBIT ETF alone attracted a substantial $157.6 million in investments.

Last week, both equities and Bitcoin were under pressure after the Bank of Japan increased interest rates, sparking an unwinding of yen carry trades and intensifying apprehensions regarding the U.S. economy. The intensity of the sell-off reached a peak on Monday, briefly pushing Bitcoin down to $50,000, a stark contrast to its near $70,000 peak just a week earlier.

Blockchain analytics firm Santiment reported that during Monday’s price collapse, large holders, or ‘whales,’ were actively accumulating Bitcoin. “August 5th and 6th witnessed the highest volume of Bitcoin whale transactions since the first week of April. Wallets holding between 10 to 1,000 BTC quickly amassed more during the dip, which saw crypto’s leading asset plunge below $50K,” Santiment noted on X.

Looking forward, the $61,800 threshold is pivotal for bullish traders, as outlined by Alex Kuptsikevich, Senior Market Analyst at FxPro. “Closing above $61.8K could inspire a swift rally towards $67K. Conversely, failing to surpass this level might set the stage for a decline back to the July and August lows near $55.5K,” Kuptsikevich elaborated in an email to CoinDesk, highlighting that $61,800 aligns with the 50- and 200-day simple moving averages.

According to Investment Advisor Two Prime, the bullish bias persists as long as Bitcoin maintains support at $54,000, with geopolitical tensions and Federal Reserve policies being crucial determinants for future price movements. “We continue to monitor $54K as a critical support zone, followed by $50K. These levels have held firm, with consistent demand whenever Bitcoin approaches this range,” Two Prime communicated in a Telegram update to clients.

“We now await developments in the Israel/Iran conflict and the U.S. government’s potential interventions to mitigate risks in both the geopolitical and monetary policy spheres,” Two Prime added.