Bitcoin Rallies Back Above $70K as Analysts See Limited Bearish Case
Bitcoin (BTC) recovered during U.S. trading hours, climbing to $70,800 after dipping to just over $68,000 earlier in the session. The rebound puts the cryptocurrency up roughly 0.5% over the past 24 hours.
Major altcoins posted stronger gains, with ether (ETH), XRP and solana (SOL) rising around 1.5%.
The broader macro backdrop was supportive. The Nasdaq advanced 1% and the S&P 500 gained 0.5%, while commodities rallied sharply. Gold climbed 1.9% to $5,075 per ounce and silver surged 7.4% to $82.50.
Bernstein analyst Gautam Chhugani dismissed the latest pullback as overstated, reiterating a $150,000 year-end price target for bitcoin. He described the current downturn as “the weakest bitcoin bear case in its history,” arguing that fears of systemic cracks have not materialized.
“Nothing blew up,” Chhugani wrote, suggesting that recurring sentiment-driven downturns are part of bitcoin’s cyclical nature. “Time remains a flat circle on Bitcoin.”
From a technical perspective, Schwab’s Jim Ferraioli highlighted mining economics as a potential bottom indicator. Historically, bitcoin has tended to stabilize near its production cost, as less efficient miners shut down operations during price declines. That process is reflected in falling network difficulty.
Mining difficulty recently recorded its largest drop since 2021, signaling some miner capitulation amid the recent slide. Ferraioli noted that a sustained rebound in difficulty could indicate that selling pressure has largely run its course.
Crypto-related stocks moved higher alongside digital assets. Bullish (BLSH) surged 14.2%, Galaxy Digital (GLXY) gained 8.2%, and Circle (CRCL) rose 5.1%. Strategy (MSTR) climbed 3%, while Coinbase (COIN) added 1%.
Miners with exposure to AI infrastructure also saw strong gains after Morgan Stanley initiated favorable coverage on TeraWulf (WULF) and Cipher Mining (CIFR), both up about 14%. Hut 8 (HUT), IREN (IREN) and Bitfarms (BITF) each advanced roughly 7%
