 ▲ Is a relief rally beginning? New York stocks and cryptocurrencies surge together… investor sentiment revives / Gemini-generated image |
[Bitcoin reclaims $71,000, surges alongside New York stocks… is a “relief rally” beginning?]
[Market on the 7th] Bitcoin jumps 11%, altcoins also rise across the board… “influx of bargain buying”
On the morning of the 7th (Korean time), the cryptocurrency market turned broadly higher, driven by Bitcoin’s sharp rebound. As bargain-hunting demand flowed in after the shock of the recent crash, vitality has returned to the overall market. The New York stock market also showed a powerful rebound, with the Dow Jones Industrial Average surpassing the 50,000 mark for the first time in history, leading a recovery in investor sentiment.
As of 7:44 a.m. Korean time, according to CoinMarketCap, Bitcoin (BTC) was trading at $71,174, up 11.39% from 24 hours earlier. After slipping to the $63,000 range the previous day, Bitcoin recovered the $71,000 level within a day, demonstrating strong resilience.
Ethereum (ETH) also rose 10.89% to $2,073, reclaiming the $2,000 level. Ripple (XRP) surged 23.68% to $1.48, posting the largest gain among major altcoins, while Solana (SOL, +12.21%), Dogecoin (DOGE, +10.85%), and Cardano (ADA, +11.77%) also recorded double-digit increases, reversing overall market sentiment.
Total cryptocurrency market capitalization rose 9.84% from the previous day to $2.41 trillion, recovering above the $2.4 trillion level.
◇ New York stocks hit “all-time highs”… a “signal flare” for sentiment recovery
The sharp rebound in the cryptocurrency market coincided with strong performance in New York equities. On the 6th (local time), the Dow Jones Industrial Average closed up 2.47% at 50,115.67, surpassing the 50,000 mark for the first time in history. The S&P 500 (+1.97%) and the Nasdaq Composite (+2.18%) also posted substantial gains.
Although there was no particular positive catalyst, the move is interpreted as rebound buying following excessive recent declines. In particular, technology and blue-chip stocks such as Nvidia (+7%) and Caterpillar (+7%) rose in tandem, stimulating overall market sentiment. Gabriel Shahin, founder of Falcon Wealth Planning, said, “The market is in the midst of a major rebalancing, with active shifts of capital taking place.”
◇ “Has the bottom been reached?” vs. “dead cat bounce”… outlooks diverge
While the market has succeeded in a sharp rebound, opinions remain divided on whether this represents a genuine trend reversal or merely a temporary technical rebound, often referred to as a dead cat bounce.
A positive signal is the inflow of bargain buying. Despite investor sentiment remaining at the level of “extreme fear,” it is encouraging that Bitcoin confirmed strong support in the early $60,000 range. In addition, as synchronization with the New York stock market continues, the fact that equities have set all-time highs could create a favorable environment for the cryptocurrency market.
However, risk factors persist. According to Polymarket data, bets are split on whether Bitcoin will maintain the $70,000 level in February, and some investors are pricing in the possibility of another drop below $65,000. Moreover, although the consumer sentiment index has edged up slightly, it remains at a low level, and uncertainty surrounding the U.S. Federal Reserve’s interest rate policy continues to be a burden.
Experts said that “profit-taking may emerge following the short-term surge,” adding that “whether Bitcoin can stably hold the $70,000 level will be a key factor in determining whether the upward trend can continue.”
*Disclaimer: This article is for informational purposes only and does not assume responsibility for any investment losses incurred based on it. The content should be interpreted solely as reference information.*