Article: Bitcoin Price Rally and Market Analysis
This article originally appeared in First Mover, CoinDesk’s daily newsletter, providing insights into the latest developments in crypto markets. Subscribe to receive daily updates.
Latest Prices
Bitcoin surged to over $59,000 early in the European morning, continuing its recovery from below $54,000 at the beginning of the week. The current rally might see BTC surpass $60,000 but is expected to be short-lived, according to Markus Thielen, founder of 10x Research. Thielen mentioned that the $55,000-$56,000 range is establishing a base from a technical analysis perspective. However, considering the medium-term technical damage, he anticipates only a temporary bullish countertrend rally. As of the latest update, bitcoin was trading just under $58,500, marking a 1.7% increase in the last 24 hours. The broader digital asset market, as indicated by the CoinDesk 20 Index, also witnessed a rise of about 1.65%.
Data Availability Blockchain Network
Celestia’s native cryptocurrency, TIA, experienced a significant 25% surge, reaching $7.30 this week, making it the largest gain among the top 100 digital assets by market value. Despite this surge, traders appear cautious and are engaging in bearish bets by shorting perpetual futures linked to the cryptocurrency, based on funding rates monitored by CoinGlass. Average funding rates across exchanges turned negative over the weekend and have since decreased to -0.1231%, hitting levels last observed in January. This indicates a prevailing bias towards bearish bets for the next six months.
Bitcoin Miners and AI Data Centers
Bitcoin miners are increasingly viewed as attractive partners for constructing AI data centers due to their available power supplies and operational capacities, as highlighted in a research report by broker Bernstein. Recent AI-related deals, such as Core Scientific’s 12-year contract with CoreWeave and Coatue Management’s $150 million investment in Hut 8, have emerged as key drivers for the sector. Bernstein initiated coverage of miner Iris Energy with an outperform rating and a $26 price target. Additionally, the broker commenced coverage of Core Scientific with an outperform rating and a $17 target price. Pre-market trading showed CORZ and IREN up approximately 3.5% and 6.5%, respectively.
Chart of the Day
– Omkar Godbole