Bitcoin rose to $75,900 during US trading hours on Tuesday, reaching its highest level since February 5. While these levels are seen for the first time after the big drop on February 5, the optimistic atmosphere in the market is due to the decrease in tensions, especially in the Middle East, and the increase in risk appetite.
Rising wave across markets
Developments were not limited only to cryptocurrencies. While the Nasdaq index increased by 1.2 percent, oil prices decreased by approximately 6 percent and the price of WTI crude oil dropped to 93 dollars. This picture indicates that investors are turning to risky assets again.
In parallel with the crypto markets, stocks of large companies affiliated with the sector also rose rapidly. MicroStrategy shares increased by 7.6 percent, Coinbase by 6.2 percent, Circle by 11 percent and Galaxy Digital by 8.3 percent.
Remarkable movements among miners
Significant increases were also recorded in companies known for Bitcoin mining. Most miners, who have been shifting their business models towards AI-focused data centers for some time, have been positively affected by the latest wave. Bitfarms, which changed its name—now known as Keel Infrastructure—came to the fore with an increase of 20.5 percent, while MARA Holdings rose 5.8 percent and Hut 8 rose 4.8 percent.
Investors expect that mining companies will be able to generate more stable income by opening up the sector to these new business lines.
It seems that the macroeconomic environment is also supportive of the general recovery in the markets. The Nasdaq reaching its highest point since February, combined with the strong performance in the ether price, increased optimism in risky assets. Joel Kruger, markets strategist at financial services firm LMAX Group, made evaluations about the current environment.
Kruger stated that the market showed signs of reactivation in the last 24 hours, and the increase in technical indicators and transaction volumes attracted attention.
According to Kruger, the next test of the crypto rally will be Bitcoin at $76,000. This point also served as resistance during the mid-March rise. Kruger also stated that if this level is exceeded and the strength in the ether price continues, the current recovery could turn into a more permanent uptrend.
These days, when Ether is stronger against Bitcoin, rotation within crypto has come to the fore again. Sharp movements in both technology stocks and cryptocurrencies indicate that risk appetite remains high.
