Amid a temporary resurgence in risk appetite and a modest rebound in technology stocks, the cryptocurrency market experienced a notable recovery. Bitcoin approached the $70,000 mark on Wednesday, ending a three-session losing streak. Concurrently, stablecoins, crypto-related equities, and select fintech companies also saw strengthened performance, indicating improved investor sentiment.
During New York trading hours, Bitcoin surged as much as 8.5% to approximately $69,500, marking its largest single-day gain since February 6. Ethereum also advanced, rising about 12% to near $2,085. The last time Bitcoin reached $70,000 was on February 16. Market analysts noted that the rebound in crypto assets is closely tied to the stabilization of U.S. equities. Investor confidence in risk assets improved after former President Donald Trump defended economic performance in a recent statement.
Earlier market volatility was triggered by a U.S. Supreme Court ruling that the Trump administration lacked authority to impose so-called "reciprocal tariffs" under emergency powers laws. Subsequently, Trump shifted to alternative legal grounds, proposing a 15% global tariff—a key factor behind the sharp decline in crypto markets earlier this week. However, in his latest remarks, Trump made no mention of digital assets.
Daniel Reis-Faria, CEO of ZeroStack, observed that recent demand for crypto assets in the U.S. has been generally subdued, but capital is rotating into altcoins, with some outperforming Bitcoin. Caroline Mauron, Co-Founder of Orbit Markets, suggested that the current rally reflects bargain-hunting following a significant correction. She added that a sustained move above $70,000 for Bitcoin could shift market narratives.
Despite the rebound, many industry insiders remain cautious about its sustainability. Jake Ostrovskis, OTC Trading Lead at Wintermute, cautioned against overinterpreting short-term gains after such a sharp decline. He noted that unless Bitcoin reclaims the $75,000 level, it may struggle to attract serious capital inflows.
Data indicates that approximately 9 million Bitcoin, or about 45% of the circulating supply, remain in an unrealized loss position. This suggests that many investors are opting to cut losses or reduce positions during rallies, dampening upward momentum. Research firm Glassnode also highlighted ongoing pressure in the crypto market, with the total market capitalization of digital assets tracked by CoinGecko down more than 20% from a year ago. Bitcoin itself has retreated nearly 50% from its peak near $127,000 in October of last year.
Alex Kuptsikevich, Chief Market Analyst at FxPro, compared the current situation to the 2022 market cycle, where a sharp decline was followed by an extended consolidation phase before a renewed upward trend emerged.
In the crypto stock sector, stablecoin issuer Circle Internet Corp. saw its shares surge significantly on Wednesday. The company reported fourth-quarter earnings that substantially exceeded expectations, with earnings per share of $0.43 compared to the consensus estimate of $0.16. Combined revenue and reserve income totaled $770 million, a 77% year-over-year increase. Boosted by these results, Circle's stock rose over 35% to around $81.67, marking one of its largest single-day gains since its IPO last year.
The circulating supply of USDC, the stablecoin issued by Circle, grew to $75.3 billion by the end of 2025, a 72% annual increase, solidifying its position as the world's second-largest stablecoin. Jeremy Allaire, CEO of Circle, highlighted the expanding use of USDC in global payments, corporate treasury management, and on-chain finance applications. CFO Jeremy Fox-Geen noted that USDC's business performance has, to some extent, decoupled from the price volatility of crypto assets like Bitcoin. Analysts suggest this reinforces the perception of stablecoins as transaction infrastructure rather than speculative instruments.
Meanwhile, crypto exchange Coinbase Global, Inc. continued its rally for a second consecutive day. The company recently announced the full rollout of zero-commission stock and ETF trading for U.S. users, available 24/5 with fractional share purchases starting as low as $1. Coinbase's stock rose 13.52% on Wednesday, making it one of the top performers in the S&P 500 index. CEO Brian Armstrong stated that the company is progressing toward its goal of becoming a comprehensive exchange and plans to introduce tokenized equities in the future.
In the competitive "wallet wars," other fintech firms also performed well. Robinhood and SoFi Technologies saw their shares rise 5.64% and 3.38%, respectively. However, market observers pointed out that these stocks remain highly correlated with Bitcoin. Since Bitcoin peaked in October of last year, Coinbase and Robinhood have declined 52% and 46%, respectively. Analysts believe that Coinbase's accelerated transition into a multi-asset platform may reduce its reliance on crypto trading volume, but its ability to retain users long-term and establish stable revenue streams remains to be seen.
Overall, market sentiment has temporarily stabilized ahead of earnings reports from major tech companies like Nvidia, leading to a technical rebound in crypto assets and related equities. However, medium- to long-term trends will depend on further developments in macro liquidity, regulatory policies, and risk appetite.
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