TLDR
- Bitcoin approached $70,000 before retreating to $68,300, unable to overcome critical resistance.
- Alternative cryptocurrencies surged past Bitcoin, with Cardano climbing 10.8%, Ether gaining 8.5%, and Dogecoin rising 8.3%.
- Nvidia exceeded Q4 earnings projections but reversed gains during after-hours trading.
- Stablecoin liquidity constraints and macroeconomic pressures continue hampering crypto market momentum.
- Bitcoin dropping beneath $60,000 could spark liquidation cascades extending to $47,000.
Bitcoin momentarily reached the $70,000 threshold on Wednesday before retreating to approximately $68,300 during Thursday’s early trading session. The fluctuation marked a roughly 5% decline from the peak to the overnight bottom at $67,700.
This marked Bitcoin’s most significant challenge to recapture $70,000 following the February 5 market crash, though it ultimately failed to achieve a definitive breakthrough.
Alternative cryptocurrencies painted a contrasting picture. Among the top 10 digital assets, Cardano dominated with a 10.8% surge, while Ether climbed 8.5%, Dogecoin advanced 8.3%, and Solana rose 6.9%. Bitcoin’s 4.3% increase ranked among the weakest performances in the major token category.
Such market divergence typically signals renewed appetite for risk. Market participants generally shift capital into more volatile altcoins when confidence emerges that a downturn has reached its nadir.
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 Results Unable to Maintain Momentum
In equity markets, Nvidia delivered fourth-quarter results surpassing analyst projections for both earnings per share and total revenue. The announcement temporarily eased concerns surrounding the “AI scare trade” narrative that has pressured markets throughout the year.
However, the optimism proved fleeting. Nvidia stock surrendered nearly all post-earnings appreciation during extended hours, ultimately closing with a marginal 0.2% gain. Nasdaq 100 futures declined 0.3% following the announcement.
The S&P 500 had recorded its consecutive second session of gains during Wednesday’s regular trading period. Both the Nasdaq Composite and Dow Jones Industrial Average concluded the day with positive returns.
Salesforce declined approximately 5% in after-hours activity, extending a downturn that has resulted in roughly 28% losses year-to-date. Technology and software equities had otherwise spearheaded the recovery during standard trading hours, with Oracle and every member of the Magnificent Seven recording advances.
During his State of the Union remarks, President Trump indicated expectations that Big Tech companies should bear the escalating electricity costs associated with data center operations.
Macroeconomic Headwinds Continue Challenging Crypto
Market maker Wintermute observed that digital currencies have been declining in tandem with technology stocks as investors pivot toward defensive and tangible assets.
Digital asset financing platform Matrixport identified stablecoin supply stagnation as a significant barrier for Bitcoin advancement. Blockchain analytics provider Glassnode projected that comprehensive liquidity restoration could require six months or longer.
Data from Cryptoquant indicates diminished selling pressure on Binance, lending credence to prospects for a near-term rebound. Nevertheless, cryptocurrency exchange Bitrue cautioned that breaching the $60,000 support level could drive Bitcoin toward the $50,000–$55,000 range, potentially reaching $47,000 if forced liquidations intensify.
Market participants will monitor Thursday’s weekly unemployment claims and Friday’s January producer price index data. Corporate earnings announcements are scheduled from Dell Technologies, Warner Bros. Discovery, and CoreWeave.
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