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After a brief decline, Bitcoin's strong recovery fueled a surge in cryptocurrency-linked stocks during premarket trading on Wednesday.
Tuesday witnessed a volatile session for Bitcoin. The world's leading cryptocurrency initially hit a new two-year high, topping $69,200, before experiencing a sharp drop that took it up to $60,000.
Analysts attribute the initial sell-off to large block sell orders placed around $70,000. According to CoinDesk, Binance saw significant sell orders clustered around key technical levels, with over 300 BTC (around $20 million) at $69,000 and another 500 BTC (around $35 million) planned for sale at $70,000.
However, Bitcoin managed to recover and eventually settled near $67,000.
This positive move in Bitcoin translated into significant gains for several related stocks. Microstrategy (Nasdaq:MSTR) led the group with an impressive 10% increase, closely followed by Cipher Mining (Nasdaq:CIFR) with 5.3%Digital Marathon (Nasdaq:MARA) with 6.3%and CleanSpark (Nasdaq:CLSK) with 6%. Coinbase Global (Nasdaq:CURRENCY) and riot platforms (Nasdaq:RIOT) also experienced notable rebounds, rising 5% and 5.6%respectively.
Importantly, pre-market gains for cryptocurrency-linked stocks like MSTR, MARA, and RIOT have not fully recovered from their significant losses on Tuesday.
Bitcoin-backed ETFs and managed futures funds: (That's going to go), (ARKB), (GBTC), (BRRR), (BTCO), (hodl), (BTCW), (FBTC), (BITB), (BC), and (LITTLE).
