Leading cryptocurrencies saw significant gains on Thursday, buoyed by a rally in the stock market following President Donald Trump’s announcement to cancel “scheduled” strikes on Iran. This news sparked optimism for a potential peace deal, contributing to a positive atmosphere in financial markets.
In the cryptocurrency realm, Bitcoin surged to an intraday high of $63,850 as buying pressure increased significantly. Ethereum approached the $1,700 mark, while other major cryptocurrencies, including XRP and Dogecoin, also experienced noteworthy spikes.
Correspondingly, cryptocurrency-related stocks rallied, with notable performances from Strategy Inc. (NASDAQ:MSTR), which closed up 4.16%, and Bitmine Immersion Technologies Inc. (NYSE:BMNR), which saw a rise of 5.63%. Nonetheless, data from Coinglass pointed to over $260 million liquidated from the crypto market within a 24-hour span, predominantly from short positions, indicating volatility in trading behavior.
Moreover, Bitcoin’s open interest climbed by 1.23%, suggesting that both retail and large-scale derivatives traders remain optimistic about the leading cryptocurrency. Despite these rapid gains, the Crypto Fear & Greed Index revealed an ongoing “Extreme Fear” sentiment prevailing within the market.
Among the top gainers in the past 24 hours were cryptocurrencies with a market capitalization exceeding $100 million. Yooldo (ESPORTS) saw a massive increase of 137.17%, trading at $0.2179, followed by Velvet (VELVET) with a 94.30% gain at $1.73, and SKYAI (SKYAI) rising by 54.46% to $0.2641. The global cryptocurrency market capitalization reached an impressive $2.17 trillion, marking a 1.98% increase from the previous day.
While stocks also enjoyed a substantial rebound – the S&P 500 rose by 1.75% to close at 7,394.30, the Nasdaq Composite increased by 2.54% to finish at 25,809.66, and the Dow Jones Industrial Average rallied by 929.97 points, or 1.86%, to settle at 50,848.75 – the rally was largely driven by Trump’s cancellation of military action and approval of discussions at the highest levels of Iranian leadership.
As the market reacted, widely followed cryptocurrency analyst Michaël van de Poppe raised concerns that the forthcoming SpaceX IPO might complicate Bitcoin’s ability to maintain its upward momentum unless it decisively breaks crucial resistance levels around $63,200. He warned that if the trend stalls, Bitcoin could potentially revisit the lows of this correction over the weekend.
Further analysis from on-chain analytics firm CryptoQuant highlighted a resurgence of speculative activity in the derivatives market, particularly regarding Ethereum, where open interest on Binance reached an all-time high. Despite a recent decline in sentiment surrounding Ethereum, it appears that a growing number of investors are willing to rebuild exposure, particularly on the long side, following a prolonged period dominated by selling pressure in futures markets.
As investors continue to navigate the shifting landscape of both cryptocurrencies and stocks, the critical question remains whether Bitcoin and other digital assets can sustain their gains in the face of upcoming market events, including the anticipated SpaceX IPO.
