U.S. crypto-related stocks opened Wednesday's session with strong gains as bitcoin (BTC) surged above $72,000 for the first time in almost a month. It hit an intraday high of $72,600 before paring to $71,500, still up roughly 5% over the past 24 hours.
Coinbase Jumps Above $200, Strategy Hits One-Month High
Exchange Coinbase (COIN) surged 12% to reclaim the $200 level, its strongest since late January. Strategy (MSTR), the largest corporate bitcoin holder, advanced nearly 9% to a one-month high. Galaxy Digital (GLXY), Robinhood (HOOD) and Ethereum treasury firm BitMine (BMNR) each gained 6%-8%. Stablecoin issuer Circle (CRCL) climbed another 6%, now up over 70% since its Q4 earnings report last week.
Mining Stocks Rebound as AI Data Center Narrative Ties Deepen
Bitcoin miners, increasingly linked to the AI data center buildout, rebounded from Tuesday's selloff. Bitfarms (BITF), Hive (HIVE), Hut 8 (HUT) and IREN saw gains between 6% and 10%.
The broader U.S. equity market also firmed, with the Nasdaq and S&P 500 each up about 1% in early trading.
$70K-$72K Zone Key Resistance; Trader Cautions Volatility to persist
The $70,000-$72,000 range has capped bitcoin's previous rally attempts over the past month. Whether this level can be breached sustainably will determine the rally's longevity.
Wintermute OTC trader Jasper De Maere said in a note that bitcoin's outperformance comes after crypto assets massively underperformed other asset classes over the past two months, which could explain the current divergence. He also noted that digital assets are not tied to supply chains, energy costs or other narratives weighing on equities.
De Maere views equities and crypto as “substitute risk-assets.” With uncertainty slowing equity inflows, capital may be rotating into digital assets. “Uncertainty is slowing down inflows in equities, which creates opportunity for crypto, which is what we're seeing now,” he wrote. But he cautioned the outperformance may not last: “The situation is fluid.” A chain reaction of prolonged tensions leading to higher energy prices and sticky inflation could reduce odds of another rate cut, which would be negative for crypto.
For now, De Maere expects volatility to persist until greater clarity emerges.