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Bitcoin surged on Thursday, extending its rebound from the previous session as bargain hunting, a wave of short-covering, and positive cues from Wall Street sparked a broader recovery across the battered cryptocurrency market.
The world’s largest cryptocurrency climbed 5.3% to $68,349.6 by 01:22 ET (06:22 GMT), recovering most of this week’s losses after briefly slipping to multi-week lows earlier in the period.
Dip buying and short squeeze drive the bounce
Bitcoin’s rally was largely driven by dip buying after weeks of heavy selling left prices deeply discounted. Despite the rebound, the cryptocurrency is still down nearly 50% from its October record highs, a factor that attracted opportunistic buyers.
The sudden upside move caught heavily crowded bearish positions off guard, triggering a short squeeze. Data from crypto analytics platform Coinglass showed that $468.7 million worth of Bitcoin short positions were liquidated over the past 24 hours, amplifying the upward momentum.
Sentiment toward Bitcoin had turned broadly pessimistic following its prolonged decline since October. Even continued purchases by major corporate holder Strategy failed to fully restore confidence, with fears lingering over a deeper and more sustained downturn.
Despite Thursday’s gains, market sentiment remained fragile. CoinMarketCap’s Crypto Fear and Greed Index stayed stuck in “extreme fear,” underscoring ongoing caution among investors.
Wall Street rebound lifts risk appetite, Nvidia offers limited lift
Improving risk appetite also supported crypto prices, as Wall Street logged two consecutive sessions of gains driven by a rebound in technology stocks. Cryptocurrencies often track movements in U.S. tech shares, especially during periods of heightened volatility.
Investor focus was briefly lifted by blockbuster earnings from NVIDIA Corporation (NASDAQ: NVDA), which reported strong results and upbeat guidance fueled by relentless demand for artificial intelligence chips.
However, the positive impact was muted. U.S. stock futures slipped in Asian trading, suggesting that much of Nvidia’s stellar performance had already been priced in. Concerns over elevated valuations, inventory levels, and exposure to China capped broader enthusiasm—limiting spillover gains into crypto markets.
Altcoins extend gains, but losses linger
Broader crypto markets followed Bitcoin higher, extending their recovery from recent lows.
Ether jumped 9.4% to $2,062.71, while XRP gained 6.4% to $1.4468. Solana and Cardano surged 7.3% and 11.1%, respectively, and BNB advanced 5.6%.
Meme tokens also joined the rally, with Dogecoin climbing 8.3% and $TRUMP rising 3.5%.
Still, despite the sharp rebound, most cryptocurrencies remain deeply in the red on a multi-month basis, highlighting that the sector’s recovery remains fragile and heavily dependent on broader risk sentiment.
