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Bitcoin recovers to $68K amid dip buying and Wall Street gains
Bitcoin rose on Thursday, extending the previous session’s recovery, as a combination of dip buying and positive signals from Wall Street helped fuel a broader rebound in the battered cryptocurrency sector.
A massive liquidation of overcrowded short positions also played a role in Bitcoin’s recovery, as bearish bets were caught off guard by the sharp price surge.
Bitcoin climbed 5.3% to $68,349.6 as of 06:22 GMT, recovering most of this week’s losses.
Bitcoin supported by dip buying and short squeeze
Bitcoin’s rise came as traders largely bought the asset at significantly discounted levels, with the world’s largest cryptocurrency still nearly 50% below its October record highs.
This, in turn, pressured heavily crowded short positions in the crypto market, triggering a short squeeze. Data from crypto aggregator Coinglass showed $468.7 million in short positions were liquidated over the past 24 hours.
Sentiment toward Bitcoin had turned largely negative following its prolonged price decline since October. Buying activity by major corporate holder Strategy did little to ease concerns about a deeper price downturn.
Despite this week’s gains, overall sentiment toward cryptocurrencies remained mostly negative. The Crypto Fear & Greed Index by CoinMarketCap remained virtually unchanged on Thursday at “extreme fear.”
Wall Street rally boosts risk appetite, but Nvidia brings limited optimism
Crypto purchases were also encouraged by two days of strong gains on Wall Street, which helped improve overall risk appetite.
Major U.S. indices advanced amid a rebound in tech stocks ahead of closely watched earnings from NVIDIA Corporation (NASDAQ: NVDA). Cryptocurrency prices often move in line with U.S. technology stocks.
The world’s most valuable company delivered impressive results and forecasts on Wednesday evening, continuing to benefit from overwhelming demand for its AI-driven chips.
However, Wall Street showed limited enthusiasm following the report, with S&P 500 futures slipping 0.2% in Asian trading. Much of Nvidia’s strong performance appeared to have already been priced into tech valuations, while ongoing concerns over high inventory levels and sales in China also weighed on sentiment.
Crypto prices today: Altcoins extend recovery
The broader cryptocurrency market largely continued its recent recovery, tracking Bitcoin’s gains.
The world’s second-largest cryptocurrency, Ether, rose 9.4% to $2,062.71, while XRP gained 6.4% to $1.4468.
Solana and Cardano climbed 7.3% and 11.1%, respectively, while BNB added 5.6%.
Among meme tokens, Dogecoin rose 8.3%, while $TRUMP gained 3.5%.
Despite this week’s rebound, most altcoins — like Bitcoin — are still carrying substantial losses over the past few months.
See also: "Bitcoin approaches $69,000 amid stock market rebound"
