Bitcoin snaps losing streak with five per cent jump before Nvidia results

Despite gains, nearly nine million Bitcoin — 45 per cent of all tokens in circulation — are worth less than what holders paid for them, according to data from researcher Glassnode. Photo by SEBASTIEN BOZON/AFP via Getty Images/Postmedia files

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Bitcoin climbed back above the US$67,000 level, snapping a three-session losing streak as stocks posted modest gains and broader risk sentiment improved ahead of Nvidia Corp.’s earnings report.

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The largest cryptocurrency climbed more than five per cent to roughly US$67,300 in New York morning trading, marking its biggest intraday gain since Feb. 13 as technology stocks led a tentative rebound across risk assets. Ether rose roughly nine per cent to around US$2,020.

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Smaller tokens also advanced with Solana gaining nearly 10 per cent, while XRP rose more than six per cent.

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“The move higher likely reflects some dip-buying behaviour after the extended selloff,” said Caroline Mauron, co-founder of Orbit Markets, adding that Bitcoin reaching US$70,000 would shift the narrative.

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A modest relief rally took hold after a benign State of the Union address from the United States’ president. Traders are now turning their focus to Nvidia, which is expected to report earnings after the stock market’s close. As a barometer for the AI-fuelled trade, results from the most valuable company in the world have the power to sway the mood across markets.

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An initial uptick in cryptocurrencies came alongside a rise in equities as President Donald Trump defended his economic record. A Supreme Court decision invalidating his ability to use emergency powers to impose so-called reciprocal tariffs — a key policy initiative — contributed to a plunge in crypto prices earlier this week, after Trump invoked a different authority to say he would impose 15 per cent global tariffs.

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The president, who was seen as pro-crypto when he returned to the White House last year, did not mention digital assets in his speech.

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The industry mood remains cautious. On Feb. 6, Bitcoin tumbled as much as 13 per cent, the most in nearly four years. The token is down roughly 50 per cent from an all-time high of almost US$127,000 reached in early October.

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Investors should avoid reading too much into the recent gains “after such a large drift lower,” said Jake Ostrovskis, head of over-the-counter trading at Wintermute, adding that until the token is back over US$75,000 its “hard to see many taking it seriously.”

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Nearly nine million Bitcoin — 45 per cent of all tokens in circulation — are worth less than what holders paid for them, according to data from researcher Glassnode. That helps explain why every rally is dying on arrival — burned holders sell into any bounce, sapping upward momentum.

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“I see parallels between the current situation and what we saw in 2022, when a sharp decline was followed by months of sideways movement, and only then did the market turn to growth and renew its highs, which took just over a year,” Alex Kuptsikevich, chief market analyst at FxPro, said this week.

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The crypto market as a whole is also under pressure, with the total market value down more than 20 per cent from one year ago, according to CoinGecko.

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