TLDR
- Bitcoin recovered to $93,000 on Thursday after falling to $89,000 following the Federal Reserve’s rate cut decision on Wednesday.
- Altcoins like Cardano and Avalanche fell 6-7% while Ethereum fell 3%, not participating in Bitcoin’s recovery.
- The Nasdaq closed down just 0.25% after falling 1.5% earlier, with the Dow and S&P 500 hitting new record highs.
- Silver jumped 5% to a new all-time high of $64 an ounce while gold climbed more than 1% near $4,300.
- Stock futures showed mixed results overnight, with Dow futures up 0.2% while Nasdaq futures fell 0.2%
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Bitcoin managed to recover from Thursday morning’s losses to trade above $93,000 by the end of the US trading session. The cryptocurrency had fallen to $89,000 earlier in the day following the Federal Reserve’s rate cut announcement on Wednesday.
Bitcoin’s recovery has been accompanied by a similar rebound in traditional markets. The Nasdaq managed to close down just 0.25% after falling 1.5% during the morning session.
The Dow Jones Industrial Average gained 1.3% on Thursday, hitting a new record high. The S&P 500 also closed at a record high with modest gains. However, the cryptocurrency market has shown different behavior than stocks.
Altcoins have not followed Bitcoin’s recovery model. Cardano’s ADA token fell 6-7% on the day. Avalanche’s AVAX also fell by a similar amount.
Crypto market diverges from traditional assets
Ethereum traded down 3%, holding above the $3,200 level. The weakness in alternative cryptocurrencies contrasted with Bitcoin’s ability to reclaim the price from $93,000.
Jasper De Maere of trading firm Wintermute pointed out that only 18% of trading sessions last year saw Bitcoin outperform the Nasdaq on days when there was major economic news. Wednesday’s action fits this pattern, with stocks rallying while crypto sold off.
De Maere said the rate cut seemed fully priced into crypto markets. He added that the Fed’s marginal easing is no longer supportive of digital assets.
Precious metals posted solid gains on Thursday. Silver jumped 5% to a new all-time high of $64 an ounce. Gold rose more than 1% to trade near $4,300.
The US dollar index fell to its lowest level since mid-October. This decline helped support the recovery in precious metals.
Stock futures mixed overnight
Stock futures showed mixed movements in overnight trading. Dow futures gained about 0.2% as the blue-chip index looked to build on its record close. S&P 500 futures traded relatively flat.
Nasdaq 100 futures fell about 0.2% overnight. Wall Street is positioning itself for the end of the trading week, with all three major indexes looking for weekly gains.
Investors pulled out of high-growth AI stocks on Thursday. Oracle’s earnings report disappointed markets and led to selling pressure on tech names. Shares of Google and Nvidia fell during the session.
The Dow’s 650-point rally is due to strength in other sectors. Visa stock jumped during the session. Nike and UnitedHealth Group also posted strong gains.
Broadcom shares fell nearly 5% after hours, despite earnings beating estimates. The company issued an optimistic outlook and forecast revenue from AI-related chips to double. Lululemon jumped about 10% in after-hours trading following news of CEO Calvin McDonald’s departure in late January.
Analytics firm Swissblock noted that the downward pressure on Bitcoin appears to be running out of steam. The company said the market was stabilizing but had not yet confirmed its recovery. They observed that the second wave of sales was weaker than the first wave.
