Leading cryptocurrencies diverged from stock markets on Thursday, as investors parsed reports of a tentative ceasefire agreement between the U.S. and Iran.
Bitcoin (CRYPTO: BTC) fell 0.91% to $73,708.31, after sliding to a six-week low of $72,500 before recovering above $73,000 by evening.
Trading volume across the crypto market jumped 17% in the last 24 hours, while Ethereum (CRYPTO: ETH) dipped below $2,000 in early trading before rebounding later in the session.
Ethereum closed down 0.61% at $2,011.14, with XRP (CRYPTO: XRP) bucking the trend with a modest 0.57% gain to $1.31.
Solana (CRYPTO: SOL) fell 0.29% to $82.27, while Dogecoin (CRYPTO: DOGE) slipped 0.50% to $0.09985.
The global cryptocurrency market capitalization stood at $2.47 trillion, following a decline of 0.80% over the last 24 hours.
Over $600 million in bullish long positions was wiped out from the cryptocurrency market in the past 24 hours, according to Coinglass data.
Bitcoin’s open interest rose 0.87% over the last 24 hours, a signal that traders were actively entering new short positions as spot prices fell.
Cryptocurrency-related stocks moved higher, with Coinbase Global Inc. (NASDAQ: COIN) and Bitmine Immersion Technologies Inc. (NYSE: BMNR) closing up 4.87% and 2.28%, respectively.
Among top performers, Basic Attention Token gained 14.25% to $0.1140, Stellar climbed 13.24% to $1.21, and DeFi App rose 12.92% to $0.02754.
Stocks extended their rally, with the Dow Jones Industrial Average gaining 24.69 points, or 0.05%, to close at 50,668.97, while the S&P 500 rose 0.58% to 7,563.63.
The tech-focused Nasdaq Composite lifted 0.91% to end at 26,917.47, as optimism grew over a reported tentative agreement to extend the U.S.-Iran ceasefire and begin formal nuclear talks.
The proposed 60-day memorandum still requires final approval from President Donald Trump, leaving markets in a state of uncertainty heading into the weekend.
Cryptocurrency analyst Rekt Capital noted that Bitcoin’s correction brought a retest of the top of the double bottom formation near $73,000, a level that had previously fueled the prior rally.
Rekt Capital added that the retest must hold successfully, describing the weekly close relative to $73,000 as a “pivotal” level for the market’s near-term direction.
A double bottom pattern signals that a downtrend is likely ending and an uptrend is beginning, resembling the letter “W” and indicating that buyers may be taking control.
Analyst Ali Martinez warned that shorting Ethereum at current levels is a “trap,” saying traders should use any weakness to accumulate more ETH rather than chase downside volatility.
“Rather than risking capital trying to perfectly time a short into a historic value zone, my approach is to remain patient with the long term thesis and gradually accumulate through,” Martinez said.
