Bitcoin’s Wild Ride: From Doldrums to Dazzling Heights, Laughing All the Way!

by

Markets

What to know:

  • In the early afternoon of U.S. trade, bitcoin has climbed a sprightly 3% off of the day’s low to a cheerful $70,800.
  • Wall Street’s bold oracle, Bernstein, has reiterated its $150,000 year-end price target on BTC – because who doesn’t love a little wishful thinking?
  • Crypto-related stocks are frolicking in the green, led by Bullish (BLSH) with a hearty 14% gain and Galaxy Digital (GLXY) strutting with an 8% advance.

Breaking free from its usual melancholic routines, bitcoin has decided to rise during the U.S. session, climbing to $70,800 after having taken a brief nap just above $68,000 earlier in the day. It seems even cryptocurrencies need their beauty sleep!

In a valiant effort to be relevant, bitcoin is now up by 0.5% over the past 24 hours, while ether, XRP, and solana are trying to catch up at around 1.5% over the same time frame. Let’s hope they don’t trip over each other!

Risk assets are generally feeling chipper on this fine Monday, with the Nasdaq up 1% and the S&P 500 up 0.5%. Gold is gleefully ahead by 1.9% to $5,075 per ounce, and silver is doing its own happy dance, up 7.4% to $82.50 per ounce. Not bad for a day’s work!

“What we are experiencing is the weakest bitcoin bear case in its history,” wrote Bernstein’s Gautam Chhugani, reiterating the firm’s lofty $150,000 year-end price target on bitcoin. It’s almost as if he’s trying to sell us a bridge!

“When all stars are aligned,” Chhugani mused, “the Bitcoin community manufactures a self-imposed crisis of confidence.” Indeed, nothing says ‘stability’ like a market that can cry wolf at any moment! “Nothing blew up, no skeletons will unravel; the media is back again to write an obituary.” Ah, the drama!

“Time,” declared Chhugani, “remains a flat circle on Bitcoin.” Perhaps time is just as confused as we are!

Getting a bit more technical, Schwab’s Jim Ferraioli advised it is helpful to look to bitcoin miners to determine when the bottom is finally in. “Previous selloffs have usually bottomed near bitcoin’s cost of production,” said Ferraioli. Miners with less efficient equipment often shut down operations temporarily-because why work harder when you can hardly work?

We can see this in real-time by watching the mining difficulty adjustment – as more miners leave the network, difficulty falls. Once it starts to rise again, that is confirmation the bottom may indeed be in, or at least sitting comfortably on the couch!

Indeed, CoinDesk reported earlier that bitcoin mining difficulty just dropped by its largest amount since 2021, as at least some miners capitulated to plunging prices. A classic tale of ‘adapt or perish’!

Crypto stocks move higher

Crypto platform Bullish (BLSH) is leading the sector higher on Monday, strutting with a 14.2% gain, while Galaxy Digital (GLXY) is up by 8.2%, and Circle Financial (CRCL) is not far behind at a 5.1% increase. Strategy (MSTR) is up 3% and Coinbase (COIN) a modest 1%. Every little bit counts, right?

Bitcoin miners who have pivoted to AI infrastructure are posting large gains as well, as Morgan Stanley initiated positive coverage on TeraWulf (WULF) and Cipher Mining (CIFR) – both are up 14%. Hut 8 (HUT), IREN (IREN), and Bitfarms (BITF) are each ahead about 7%. It’s a digital gold rush out there, folks!

Read More

2026-02-09 22:36