Bitcoin (BTC) made a comeback on Wednesday, surging back above the $68,000 mark and shaking off a three-day losing streak as broader risk appetite improved across global markets. The move came alongside modest gains in U.S. equities, with technology shares stabilizing ahead of a closely watched earnings report from Nvidia, widely viewed as a barometer for the AI-driven risk trade.
Bitcoin rose more than 6% intraday, marking its strongest single-session gain in several weeks. Ether outpaced Bitcoin with double-digit percentage gains, while other major tokens, including Solana and XRP, also advanced, reflecting renewed appetite for higher-beta digital assets.
Risk Sentiment Lifts Crypto Alongside Stocks
The rebound appears tied to a broader improvement in investor sentiment. Following recent turbulence sparked by trade policy uncertainty and shifting expectations regarding tariffs, markets showed signs of stabilization after the president’s latest economic remarks and a calmer tone from policymakers.
Bitcoin is increasingly trading in tandem with traditional risk assets, according to analysts at major financial outlets. When liquidity improves, and equities recover, crypto often follows — and the reverse has also proven true during tightening cycles. Some strategists described the latest move as tactical dip-buying after a steep pullback earlier this month, when Bitcoin suffered one of its sharpest multi-day declines since 2022.
Altcoins Show Relative Strength
- Ether rallied sharply, reflecting renewed interest in decentralized finance and staking-related activity.
- Solana surged as traders rotated into networks perceived to offer higher yield and ecosystem growth.
- XRP also advanced, benefiting from improved overall market sentiment.
This rotation into altcoins suggests speculative appetite is returning, though analysts caution that such moves can reverse quickly if macro conditions deteriorate.
Structural Pressures Still in Play
Despite the bounce, Bitcoin remains significantly below its all-time high near $127,000 reached last October. Data from blockchain analytics firms show a sizable portion of circulating supply is currently held at a loss; a dynamic that can create overhead resistance as investors sell into rallies to break even.
Investors note parallels to prior crypto cycles, particularly 2022, when sharp drawdowns were followed by prolonged sideways consolidation before a more durable recovery took hold. Until Bitcoin reclaims higher technical thresholds, including levels north of $75,000, some traders remain skeptical that a sustained bull phase has resumed.
Macro and Policy Crosscurrents
Crypto markets have also been reacting to shifting U.S. trade policy. A recent Supreme Court decision limiting tariff authority briefly rattled risk assets before the administration introduced a revised framework. While digital assets were not directly addressed in recent policy speeches, traders continue to interpret broader economic signals for clues about liquidity and regulatory posture. Institutional demand remains mixed. Exchange-traded crypto products have seen uneven flows, and derivatives positioning suggests traders are hedging against further volatility even as spot prices rise.
Looking Ahead
Bitcoin’s ability to extend this rebound may hinge on broader market catalysts, including corporate earnings, Federal Reserve policy signals, and global liquidity trends. If risk appetite continues to improve and institutional flows stabilize, the recent bounce could build momentum. However, with a large share of holders still underwater and macro uncertainty lingering, volatility is likely to remain a defining feature of crypto markets in the weeks ahead.