Bitcoin is experiencing a noteworthy rise during the U.S. trading session, climbing to $70,800 after previously dipping just above $68,000 earlier in the day. Currently, Bitcoin is up 0.5% over the past 24 hours. Other major cryptocurrencies are following a similar upward trajectory, with Ether seeing a price of $2,124.05, XRP at $1.4476, and Solana at $85.45, each gaining nearly 1.5% within the same timeframe.
The positive trend in risk assets is reflected in broader market indicators, as the Nasdaq index increases by 1% and the S&P 500 rises by 0.5%. Precious metals also gained ground, with gold prices climbing 1.9% to reach $5,075 per ounce, and silver seeing a significant jump of 7.4% to $82.50 per ounce.
Bernstein analyst Gautam Chhugani described the current market conditions as the “weakest bitcoin bear case in its history,” standing firm on the firm’s ambitious year-end price target of $150,000 for Bitcoin. Chhugani pointed out that historically, the Bitcoin community has sometimes created a scenario of crisis for itself, but remarked that currently, “nothing blew up, no skeletons will unravel,” and media narratives appear to be shifting away from pessimism. He emphasized the cyclical nature of time in the context of Bitcoin, suggesting that patience is crucial as markets evolve.
On a more technical note, Schwab’s Jim Ferraioli suggested looking at bitcoin mining operations for signs of market stabilization. He explained that past selloffs have usually bottomed out around the cost of bitcoin production. When less efficient miners suspend operations in response to declining prices, it can signal a market bottom. Ferraioli highlighted that a recent drop in mining difficulty, the largest since 2021, indicates that some miners have indeed capitulated.
The crypto sector’s performance is reflected in a surge in crypto-related stocks. Bullish (BLSH) is leading the pack with a notable increase of 14.2%. Galaxy Digital (GLXY) gained 8.2%, while Circle Financial (CRCL) saw a rise of 5.1%. Other notable advancements include MicroStrategy (MSTR) rising by 3% and Coinbase (COIN) up by 1%.
Furthermore, bitcoin miners who have adapted their operations toward artificial intelligence infrastructure are also experiencing substantial gains. Morgan Stanley has initiated favorable coverage on TeraWulf (WULF) and Cipher Mining (CIFR), both showing increases of 14%. Additional mining companies, including Hut 8 (HUT), IREN (IREN), and Bitfarms (BITF), are each reporting gains of about 7%.
The current market dynamics indicate a mix of cautious optimism and active adaptation among industry players, reflecting broader trends in the cryptocurrency ecosystem.
