Markets
Bitcoin Rebounds Above $59,000, But Rally May Be Short-Lived
Bitcoin hit above $59,000 early in the European morning, extending a recovery from below $54,000 earlier in the week. Rally could take BTC back to $60,000, but will be short-livedMarkus Thielen, founder of 10x Research, said: “The $55,000-$56,000 range is a base from a technical analysis perspective. However, given the medium-term technical damage, we do not anticipate more than a tactical bull rally in the short term,” Thielen wrote Tuesday. At the time of writing, bitcoin was trading just under $58,500, up 1.7% in the past 24 hours. The broader digital asset market, as measured by the CoinDesk 20 Index, was up about 1.65%.
Data Availability Blockchain Network Celestia’s native cryptocurrency, TIA, jumped 25% to $7.30 this weekthe largest increase among the top 100 digital assets by market value. Traders appear skeptical of this rally and are taking bearish bets by shorting perpetual futures contracts tied to the cryptocurrency, according to funding rates tracked by CoinGlass. Average funding rates across exchanges turned negative over the weekend and have since dropped to -0.1231%, reaching levels last seen in January. In other words, the bias toward bearish bets is the most pronounced in six months.
Bitcoin miners are attractive partners to help build AI data centers because of their available power supplies and operating capabilitiesbrokerage Bernstein said in a research report released Tuesday. Recent AI deals, including Core Scientific’s (CORZ) 12-year deal with CoreWeave and Coatue Management’s $150 million investment in Hut 8 (HUT), have emerged as key catalysts for the sector, the report said. Bernstein initiated coverage of miner Iris Energy (IREN) with an outperform rating and a $26 price target. The brokerage also initiated coverage of Core Scientific with an outperform rating and a $17 price target. CORZ and IREN were up about 3.5% and 6.5%, respectively, in premarket trading.