Bitcoin and Ether Surge Post-Sell-Off, Market Eyes Recovery

Bitcoin rebounds to $66,801.38 and Ether hits $3,793.99, driving a broad crypto market recovery and altcoin surge.

By Bill Bullington

3/6, 09:40 EST
Bitcoin / U.S. dollar
Coinbase Global, Inc.
Marathon Digital Holdings, Inc.
Riot Blockchain, Inc

Key Takeaway

  • Bitcoin and ether rebound sharply, rising 7.2% to $66,801.38 and over 12% to $3,793.99 respectively, after a sell-off post new record highs.
  • Cryptocurrency market sees significant liquidations with $100 million in short and $236 million in long positions across exchanges.
  • Major crypto-related stocks like Coinbase and Microstrategy also see gains of 5% and 8%, indicating broader market recovery.

Crypto Market Rebounds

Cryptocurrencies staged a strong recovery on Wednesday, bouncing back from the previous day's sell-off. Bitcoin surged by 7.2% to $66,801.38, while ether saw a remarkable increase of over 12% to reach $3,793.99, its highest level since January 2022. The rebound came after bitcoin hit a new intraday record of $69,210 on Tuesday, marking its first time since November 2021.

Market Sentiment and Liquidations

Enclave Markets CEO David Wells described Tuesday's sell-off as a "bullish sharp correction," a common occurrence after reaching multiyear all-time highs. He anticipates a potential retest of the highs, with significant options positions in play. Over the past 24 hours, centralized exchanges witnessed $100 million in short liquidations and $236 million in long liquidations, indicating market volatility and leveraged positions.

Altcoins and Stock Movement

The rebound in bitcoin and ether also lifted other cryptocurrencies, with Binance surging nearly 11% and Solana advancing 7%. Meme coins like dogecoin and Shiba Inu coin saw substantial gains of 18% and 23%, respectively. Crypto-related stocks also saw positive movement, with Coinbase, Microstrategy, Marathon Digital, and Riot Platforms all posting gains.

The Rise of Altcoins

Smaller cryptocurrencies are gaining momentum, outpacing Bitcoin's recent performance. An index tracking the bottom half of the largest 100 digital assets has surged by about 60% over the past month, surpassing Bitcoin's 56% increase. Market observers note a shift towards non-Bitcoin assets, with increased investment flows into alternative tokens. Altcoins like Ether are yet to reach all-time highs, reflecting the current focus on Bitcoin and upcoming developments in the crypto space.

Street Views

  • David Wells, Enclave Markets (Neutral on Bitcoin):

    "Yesterday seemed like a bullish sharp correction to me, which is fairly typical when you reach a multiyear all-time high... There will probably be a second test of the highs, and if we break through that, it could get interesting given the large options positions. These melt ups include sharp corrections likely related to leveraged long momentum positions taking gains at key levels then getting back in lower."