The cryptocurrency market staged a sharp turnaround over the past 24 hours, with bitcoin (BTC-USD) and major altcoins rebounding after weeks of heavy losses that had seen the world’s largest digital asset fall roughly 50% from its October all-time high above $126,000.
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The rebound comes as US spot bitcoin (BTC-USD) exchange-traded funds (ETFs) recorded fresh net inflows, while better-than-expected earnings from Nvidia (NVDA) offered a tentative boost to risk sentiment across global markets, even as investors remain cautious.
Bitcoin (BTC-USD) was trading around $67,900, up 4.4% over the past 24 hours. Ether (ETH-USD) climbed 8.5% to about $2,053 over the same period. The total cryptocurrency market capitalisation rose 4.3% to $2.42tn, according to Coingecko data.
On Wednesday, US spot bitcoin (BTC-USD) ETFs recorded total net inflows of $507m, a notable reversal after recent outflows. BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) led the way, posting the largest single-day net inflow at $297m.
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Spot ethereum ETFs also saw renewed interest, with total net inflows of $157m. Fidelity Investments’ Fidelity Ethereum Fund (FETH) recorded the largest single-day inflow among ether (ETH-USD) products at $61.94m.
The renewed demand for regulated crypto investment vehicles comes as broader equity markets were buoyed by strength in AI-related stocks.
Shares of Nvidia (NVDA) edged higher in after-hours trading after the chipmaker once again topped Wall Street expectations, though gains were measured as investors digested the results.
The company reported fourth-quarter revenue of $68.1bn, up 73% year-on-year. Its data centre division generated $62.3bn, accounting for the vast majority of total sales, as demand for AI-focused chips remained strong.
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AI infrastructure and semiconductor stocks had already been supporting broader equity markets ahead of the release, helping lift major US indices including the S&P 500 as investors looked for confirmation that demand for advanced AI hardware remains resilient.
The broader risk-on tone appeared to spill over into digital assets and crypto-related equities, which have struggled in recent weeks alongside high-growth technology stocks.
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On-chain data also highlights how sharply cryptocurrency market sentiment had deteriorated before this rebound. At one point earlier this week, just 52.76% of bitcoin’s (BTC-USD) circulating supply was in profit, down from effectively 100% in early October, when nearly every holder was sitting on gains.
