Bitcoin has fought its way back to $111,000, putting an end to a rough two-week stretch that made traders anxious. The rebound also affected crypto-related stocks, pushing them up, and calming fears that October’s pullback was the start of a deeper correction.
Market analyst Linh Tran from XS.com said, “Bitcoin is currently in a re-accumulation phase following its short-term correction, with market sentiment stabilizing and institutional demand remaining resilient.” The rally also boosted companies with ties to the digital asset. Strategy (MSTR) jumped more than 2% after revealing a new purchase of 168 bitcoins between October 13 and 19, at an average cost of $112,051 each. As Cryptopolitan reported, the company now holds a total of 640,418 Bitcoins.
Bitcoin climbs its way to the top as crypto stocks gain momentum
Trading platforms were also not left out of the party as Robinhood (HOOD) climbed by 4.5%, while Coinbase (COIN) rose by 2.5%, tracking the rebound in overall crypto market sentiment. Circle (CRCL), the stablecoin issuer, surged by 3.5%, according to data from Yahoo Finance. Crypto mining firms saw boosts as well, with Bitcoin’s recovery boosting their performance.
MARA Holdings (MARA), which has expanded into HPC data centers, jumped by 6%. Bit Digital (BTBT) surged by 15%, while Cipher Mining (CIFR) climbed by 6%. Analysts said miners’ diversification into AI hosting and compute services has kept them cushioned even when Bitcoin cools off, but Monday’s rally showed that price still rules sentiment in the sector.
Adding to the mood change was a report from Japan’s Financial Services Agency, which said it was considering allowing domestic banks to hold Bitcoin and other cryptocurrencies directly. Meanwhile, Ethereum followed suit, reclaiming the $4,000 level after briefly slipping to $3,700 last week. The synchronized bounce across assets showed that the correction phase might be fading faster than expected, at least for now.
Rob Mitchnick, BlackRock’s head of digital assets, said that last week’s brief “mini-crash” in Bitcoin and the accompanying sell-off across altcoins came mostly from highly leveraged speculative trading on offshore futures exchanges. He said that while those derivatives platforms represent less than 2% of Bitcoin’s total ownership, they still account for most of the daily trading volume, making them a source of short-term volatility.
Rob added, “Over time, the more sophisticated sort of long-term buy-and-hold-type investing activity takes over and predominates, but not with that short-term noise.” His comments are similar to what many market veterans have observed lately: institutional players tend to remain calm during dips, while overleveraged retail traders tend to panic first.
