Key Moments
- Bitcoin advanced 5.3% to $68,349.6 by 01:22 ET (06:22 GMT), recovering most of this week’s earlier declines.
- Roughly $468.7 million in Bitcoin short positions were liquidated in the past 24 hours amid a sharp short squeeze.
- Altcoins including Ether, XRP, Solana, Cardano, BNB, Dogecoin, and $TRUMP also moved higher, although broader sentiment stayed in “extreme fear.”
Rebound Accelerates as Sellers Get Squeezed
Bitcoin advanced on Thursday, extending the prior session’s rebound as bargain hunting and improving risk sentiment helped fuel a broader recovery across the cryptocurrency market.
A sharp unwinding of crowded short positions added momentum to the move higher, with bearish traders caught offside by Bitcoin’s sudden price jump.
By 01:22 ET (06:22 GMT), Bitcoin was up 5.3% at $68,349.6, clawing back most of the losses recorded earlier in the week.
Dip Buying and Liquidations Drive Price Action
Market participants stepped in to buy at what many perceived as discounted levels, even as Bitcoin remained down nearly 50% from its record peak reached in October.
The renewed buying pressure squeezed heavily concentrated short positions. Data from crypto analytics platform Coinglass showed that $468.7 million in Bitcoin short positions were liquidated over the past 24 hours.
Sentiment toward Bitcoin had deteriorated after a sustained drawdown since October. Accumulation by a major corporate holder, Strategy, had not been sufficient to ease concerns about the potential for a deeper correction.
Even with this week’s recovery, overall mood in the digital asset space stayed cautious. Coinmarketcap’s crypto fear and greed index was still signaling “extreme fear” as of Thursday, with little change despite the bounce.
Wall Street Rally Supports Risk Assets, Nvidia Reaction Muted
Improved tone in U.S. equities also lent support to cryptocurrencies, after two consecutive sessions of solid gains on Wall Street bolstered risk appetite.
Major U.S. stock benchmarks had moved higher on the back of a rebound in technology names, ahead of closely watched results from NVIDIA Corporation (NASDAQ: NVDA). Crypto prices often show a tendency to move in tandem with U.S. tech shares.
The company, described as the world’s most valuable, reported strong earnings and guidance on Wednesday evening, continuing to benefit from robust, artificial intelligence-driven demand for its chips.
However, the broader market reaction was subdued. S&P 500 Futures were down 0.2% in Asian trading, suggesting that much of Nvidia’s strength had already been reflected in technology valuations. Ongoing worries over the firm’s elevated inventory levels and its exposure to Chinese demand also weighed on sentiment.
Altcoins Join the Upswing
Altcoins broadly participated in the rebound, mirroring Bitcoin’s move higher.
| Asset | Move | Price / Change |
|---|---|---|
| Bitcoin | Price | $68,349.6 (+5.3%) |
| Ether (World no.2 crypto) | Price | $2,062.71 (+9.4%) |
| XRP | Price | $1.4468 (+6.4%) |
| Solana | Performance | +7.3% |
| Cardano | Performance | +11.1% |
| BNB | Performance | +5.6% |
| Dogecoin | Performance | +8.3% |
| $TRUMP | Performance | +3.5% |
Ether, the second-largest cryptocurrency by market standing, rose 9.4% to $2,062.71. XRP added 6.4% to trade at $1.4468.
Solana and Cardano climbed 7.3% and 11.1%, respectively, while BNB advanced 5.6%.
Among meme-linked tokens, Dogecoin gained 8.3%, and $TRUMP was up 3.5%.
Nonetheless, despite the recent bounce, many altcoins – like Bitcoin – continued to carry substantial losses accumulated over recent months.
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