Bitcoin (COIN:BTCUSD) advanced on Thursday, continuing its recovery from the previous session as bargain hunters returned to the market and improving sentiment in global equities helped stabilise the broader cryptocurrency space after weeks of heavy pressure.
The move higher was amplified by a wave of short covering, with traders betting against the digital asset forced to unwind positions following an unexpectedly sharp price rebound.
Bitcoin climbed 5.3% to $68,349.6 at 01:22 ET (06:22 GMT), regaining most of the losses posted earlier this week.
Dip buyers return as short positions unwind
The rally was driven in part by investors stepping back into the market at discounted valuations, with Bitcoin still trading roughly 50% below the record highs reached in October.
As prices moved higher, crowded bearish trades came under pressure, triggering a short squeeze that accelerated gains. 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 weakened considerably after a prolonged downturn that began late last year. Purchases by large corporate holder Strategy failed to meaningfully ease concerns that prices could fall further.
Even with the recent rebound, overall crypto sentiment remained subdued. Coinmarketcap’s crypto fear and greed index held steady in “extreme fear” territory as of Thursday.
Strong equities backdrop supports risk appetite, Nvidia reaction muted
Cryptocurrency markets also benefited from improved risk appetite following two consecutive sessions of gains on Wall Street.
U.S. equities advanced alongside a rebound in technology stocks ahead of closely watched results from NVIDIA Corporation (NASDAQ:NVDA), with crypto assets often showing correlation with tech-sector performance.
The chipmaker delivered stronger-than-expected earnings and upbeat guidance on Wednesday, supported by sustained demand tied to artificial intelligence infrastructure.
However, the broader market response remained restrained, with S&P 500 futures declining 0.2% during Asian trading hours. Much of Nvidia’s positive performance appeared already reflected in valuations, while concerns around elevated inventories and exposure to China weighed on investor sentiment.
Altcoins extend gains alongside Bitcoin
The broader digital asset market moved higher as well, largely tracking Bitcoin’s rebound.
Ether, the world’s second-largest cryptocurrency, rose 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 added 5.6%.
Among meme-focused tokens, Dogecoin climbed 8.3%, while $TRUMP rose 3.5%.
Despite the latest recovery, most alternative cryptocurrencies — like Bitcoin itself — remain significantly below levels seen in recent months following the sector’s broader correction.
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