Bitcoin Spikes 2.16% to $65K, Analyst Says 'Don't Fear' $60K Dip

For crypto traders, Thursday’s rebound was both a relief and a reminder. While Bitcoin's push back above $65K and an analyst's message to 'not fear' a potential dip to $60,000 boosted morale, the market remains in a precarious state. Over $200 million in leveraged positions were wiped out, with short-sellers paying the heaviest price. The Crypto Fear & Greed Index is still flashing 'Extreme Fear,' suggesting that despite the bounce, conviction among holders is fragile. This recovery, then, may be driven more by a short squeeze than organic demand.

The cryptocurrency market snapped back sharply on Thursday, erasing the losses sparked by a Federal Reserve-driven sell-off just 24 hours earlier. Bitcoin pushed above the psychologically important $65,000 level, trading at $65,112.78 as of late evening in New York, a gain of 2.16% over the prior day. Ethereum, while still grappling with bearish resistance near $1,930, managed a 1.31% rise to $1,929.21. Other major tokens also climbed: XRP added 1.48% to $1.08, Solana advanced 2.05% to $75.02, and Dogecoin inched up 0.72% to $0.07079. The total cryptocurrency market cap rose by 1.04% to $2.19 trillion, reflecting broad-based but uneven buying.

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Other major tokens also climbed: XRP added 1.48% to $1.08, Solana advanced 2.05% to $75.02, and Dogecoin inched up 0.72% to $0.07079.

The recovery played out alongside a powerful rally on Wall Street. The Dow Jones Industrial Average surged 613.92 points, or 1.2%, to 52,208.06, while the S&P 500 climbed 1.7% to 7,437.63. The tech-heavy Nasdaq Composite was the standout performer, leaping 2.8% to 25,122.18, powered by Microsoft's post-earnings surge of over 15%. The software giant's better-than-expected quarterly report reignited risk appetite, pulling cryptocurrencies higher in its wake. Crypto-related equities also benefited: Strategy Inc. (MSTR) shares rose 4.73% and Bitmine Immersion Technologies (BMNR) closed up 2.18%.

The previous day's sell-off had been triggered by the Federal Reserve's policy announcement, which spooked markets with its hawkish tone, pushing Bitcoin briefly toward $60,000—a level that a prominent analyst described as not to be feared. "Don't fear BTC dropping to $60,000," the analyst was quoted as saying, suggesting the consolidation could be healthy for longer-term price structure. Despite the bounce, market sentiment remained fragile. The Crypto Fear & Greed Index clung to "Extreme Fear" territory, highlighting the lingering unease among traders.

Liquidation data from Coinglass revealed that nearly $200 million in positions were wiped out over the past 24 hours, with bearish short sellers bearing the brunt of the squeeze. This suggests that over-leveraged traders betting on further declines were caught off guard by the swift reversal. Bitcoin's open interest rose by 2.25%, indicating that new money was entering the market as spot prices climbed, and the overall balance between buy and sell orders pointed to an equilibrium—neither bulls nor bears had a decisive advantage.