TLDR
- Bitcoin approached $70,000 but retreated to $68,300, unable to breach critical resistance.
- Alternative cryptocurrencies outshined Bitcoin, with Cardano climbing 10.8%, Ether gaining 8.5%, and Dogecoin rising 8.3%.
- Nvidia surpassed Q4 earnings projections but stock gains evaporated during after-hours trading.
- Stagnant stablecoin liquidity and macroeconomic headwinds continue challenging crypto market recovery.
- Bitcoin falling beneath $60,000 could initiate a cascade of liquidations potentially reaching $47,000.
Bitcoin made a brief run at the $70,000 mark on Wednesday before retreating to approximately $68,300 during Thursday’s early trading hours. The cryptocurrency experienced nearly a 5% fluctuation from its session peak down to an overnight trough of $67,700.
This marked the most significant effort to recapture the $70,000 level since the sharp decline on February 5, though it failed to produce a decisive breakthrough.
The altcoin market painted a contrasting picture. Among the top 10 cryptocurrencies, Cardano emerged as the leader with a 10.8% surge, trailed by Ether’s 8.5% advance, Dogecoin’s 8.3% climb, and Solana’s 6.9% increase. Bitcoin’s 4.3% uptick ranked among the most modest gains across major digital assets.
Such performance disparity typically signals a resurgence in risk appetite. Market participants commonly shift capital into more volatile altcoins when they sense the worst of a downturn has passed.
Daniel Reis-Faria, CEO of ZeroStack, said in an email: “The wave of forced selling is starting to clear out. Altcoins are outperforming again, and more of them are ahead of Bitcoin. That tells me we’re seeing a rotation.”
Nvidia Earnings Beat Fails to Maintain Momentum
In equity markets, Nvidia delivered Q4 financial results that exceeded Wall Street projections for both earnings and revenue. The announcement temporarily eased concerns surrounding the “AI scare trade” that has pressured markets throughout the year.
However, the positive momentum proved fleeting. Nvidia stock relinquished nearly all post-earnings appreciation during after-hours trading, finishing with a marginal 0.2% gain. Nasdaq 100 futures declined 0.3% following the release.
The S&P 500 had recorded its second consecutive positive session during Wednesday’s regular trading. Both the Nasdaq Composite and Dow Jones Industrial Average also closed higher.
Salesforce dropped approximately 5% in extended trading, extending a decline that has resulted in roughly a 28% year-to-date loss. Technology and software equities had otherwise spearheaded the recovery during standard market hours, with Oracle and every member of the Magnificent Seven registering advances.
During his State of the Union address, President Trump indicated his expectation that Big Tech companies should shoulder the expanding electricity costs associated with data center operations.
Macroeconomic Headwinds Continue Pressuring Crypto Assets
Market maker Wintermute observed that digital currencies have been declining in tandem with technology stocks as investors migrate toward defensive and physical assets.
Crypto finance platform Matrixport identified stagnant stablecoin supply as a barrier for Bitcoin’s progress. Onchain analytics firm Glassnode projected that broader market liquidity might require six months or longer to fully stabilize.
Data from Cryptoquant indicates that selling pressure has diminished on Binance, lending credibility to expectations of a near-term rebound. Nevertheless, crypto exchange Bitrue cautioned that a decline below $60,000 could drive Bitcoin toward the $50,000–$55,000 range, or potentially down to $47,000 if forced liquidations intensify.
Market participants will also monitor Thursday’s weekly unemployment claims and Friday’s January producer price index release. Upcoming earnings reports include Dell Technologies, Warner Bros. Discovery, and CoreWeave.
