Bitcoin Surges Above $59K, But Experts Warn Rally Might Be Short-Lived
Coindesk5 days ago
910

Bitcoin Surges Above $59K, But Experts Warn Rally Might Be Short-Lived

Bitcoin
Crypto
MarketSentiment
BTC
Celestia

Summary:

  • Bitcoin surged above $59,000, extending a recovery from below $54,000.

  • Analysts believe the rally could push BTC towards reclaiming $60,000, but some caution that it might be short-lived.

  • Celestia's native cryptocurrency, TIA, has experienced a 25% surge, but traders are taking bearish bets by shorting perpetual futures tied to TIA.

  • Bitcoin miners are becoming attractive partners for building AI data centers due to their readily available power supplies and operating capabilities.

  • Solana-based MONK has replaced dogwifwhat (WIF) as the fourth largest meme coin by market value.

  • BONK's treasury proposed to burn 84 billion coins, boosting its market value past WIF.

Bitcoin Climbs Back Above $59K, But Rally Could Be Short-Lived

Bitcoin experienced a significant rally, reaching over $59,000 in the early European morning, extending a recovery from below $54,000 at the start of the week. While some analysts believe this could push BTC towards reclaiming $60,000, others warn of a short-lived rally.

Markus Thielen, founder of 10x Research, stated that the $55,000-$56,000 range is forming a base from a technical analysis perspective. However, he cautions that due to medium-term technical damage, this rally is likely to be a short-term tactical bullish countertrend rally.

At the time of writing, bitcoin was trading at just under $58,500, an increase of 1.7% in the last 24 hours. The broader digital asset market, as measured by the CoinDesk 20 Index, rose about 1.65% during this period.

Celestia's TIA Sees Significant Gains, But Traders Remain Skeptical

The native cryptocurrency of blockchain network Celestia, TIA, has witnessed a remarkable 25% surge to $7.30 this week, marking the largest gain among the top 100 digital assets by market value. However, traders seem to be skeptical about this surge and are taking bearish bets by shorting perpetual futures tied to TIA. This sentiment is reflected in the negative funding rates across exchanges, reaching levels last seen in January, indicating a strong bias for bearish bets.

Bitcoin Miners Emerge as Attractive Partners for AI Data Centers

According to a recent research report by Bernstein, Bitcoin miners are becoming attractive partners in building AI data centers. Their readily available power supplies and operating capabilities make them ideal collaborators in this sector. Recent AI deals like Core Scientific’s 12-year agreement with CoreWeave and Coatue Management’s $150 million investment in Hut 8 have served as key catalysts for the sector. Bernstein has initiated coverage of miner Iris Energy (IREN) with an outperform rating and a $26 price target, as well as Core Scientific with an outperform rating and a $17 objective. CORZ and IREN saw pre-market trading gains of around 3.5% and 6.5%, respectively.

Meme Coins on the Rise

Solana-based MONK has displaced dogwifwhat (WIF) as the fourth largest meme coin by market value. BONK's treasury recently proposed to burn 84 billion coins, propelling its market value past WIF.

Comments

0
0/300