Bitcoin's Recent Gains: Can They Last?

The cryptocurrency market saw a significant surge at the beginning of the week, with Bitcoin rebounding and edging closer to its all-time high of $73.1K. Bitcoin had a remarkable 7% jump to $69.7K by 12:05 p.m. ET, indicating strong gains. This upward momentum also extended to other digital assets like Ether, Cardano, Solana, Dogecoin, and Avalanche, all experiencing notable gains. The question now is, will Bitcoin hold onto these gains or face a potential correction in the near future?

Will Bitcoin Hold Its Gains?

Cryptocurrencies surged at the start of the week, with Bitcoin (BTC-USD) bouncing back from a recent dip and approaching its all-time high. At 12:05 p.m. ET, Bitcoin had jumped 7% to $69.7K, just shy of its $73.1K record set earlier this month.

Broad-Based Gains in the Crypto Market

The rally extended to other cryptocurrencies as well. Ether (ETH-USD) rose 5.5%, Cardano (ADA-USD) gained 4.4%, Solana (SOL-USD) climbed 9.5%, Dogecoin (DOGE-USD) added 5.2%, and Avalanche (AVAX-USD) surged 9.4%.

Bitcoin's Volatility Ahead of Halving

Bitcoin's intraday surge followed a selloff last week as investors became cautious ahead of the upcoming halving event next month. It remains to be seen whether Bitcoin's volatility will continue in the lead-up to the event, with some calling for consolidation.

Skepticism About Halving Impact

SA analyst Richard Durant expressed skepticism about the importance of halvings as a price catalyst. He noted that all existing Bitcoin could potentially be a source of supply, not just newly mined Bitcoin, questioning the halving's significance, especially given Bitcoin's low inflation rate.

Crypto-Linked Stocks Rise

Crypto-linked stocks also generally traded higher, with Riot Platforms (RIOT) up 6.8%, Marathon Digital (MARA) up 2.4%, CleanSpark (CLSK) up 16.9%, Hut 8 (HUT) up 5.1%, MicroStrategy (MSTR) up 17.6%, Coinbase (COIN) up 9.6%, and Bakkt (BKKT) up 1.4%.