Bitcoin climbed on Thursday, building on the previous session’s rebound as bargain hunting and positive momentum from Wall Street supported a broader recovery across the cryptocurrency market.
The world’s largest cryptocurrency rose 5.3% to $68,349.6 by 01:22 ET (06:22 GMT), recovering most of the losses recorded earlier this week. The move was partly driven by traders stepping back in after steep declines, with Bitcoin still down nearly 50% from its October record high.
A wave of short covering also accelerated the rally. As Bitcoin’s price jumped unexpectedly, heavily crowded short positions were forced to close, triggering a short squeeze. According to data from crypto analytics platform Coinglass, approximately $468.7 million in short positions were liquidated over the past 24 hours.
Market sentiment toward Bitcoin had remained largely negative following months of sustained price weakness. Even continued purchases by major corporate holder Strategy failed to fully restore confidence amid fears of a deeper correction. Despite the recent bounce, overall crypto sentiment remains fragile. CoinMarketCap’s Crypto Fear and Greed Index continued to signal “extreme fear” as of Thursday, reflecting cautious investor positioning.
Improved risk appetite from Wall Street also provided support to digital assets. U.S. stock indexes posted two consecutive days of gains, led by a rebound in technology shares ahead of earnings from NVIDIA Corporation. Cryptocurrency prices often move in tandem with U.S. tech stocks, amplifying the impact of equity market sentiment.
NVIDIA reported stronger-than-expected earnings and guidance, driven by robust demand for artificial intelligence chips. However, the broader market reaction was muted. S&P 500 futures slipped 0.2% during Asian trading, as much of NVIDIA’s positive outlook appeared already priced into valuations. Concerns over elevated inventory levels and exposure to Chinese sales also limited enthusiasm.
Across the wider crypto market, altcoins extended their rebound alongside Bitcoin. Ether, the second-largest cryptocurrency, surged 9.4% to $2,062.71, while XRP gained 6.4% to $1.4468. Solana and Cardano advanced 7.3% and 11.1%, respectively, and BNB rose 5.6%. Among meme tokens, Dogecoin climbed 8.3%, while $TRUMP added 3.5%.
Even with this week’s recovery, most altcoins — like Bitcoin — remain significantly below their recent highs, underscoring the volatility that continues to define the digital asset market.
