Bitcoin climbed back toward $75,000 on Thursday as U.S. stock markets extended their rally into a second consecutive day of record highs. The simultaneous rebound in both asset classes has reignited debate about whether a sustained bull market is underway.
The cryptocurrency, which had dipped below $73,000 earlier this week, saw renewed buying pressure as the S&P 500 and Nasdaq Composite both set fresh all-time highs. Analysts noted the correlation between crypto and equities has strengthened in recent months. ‘We’re seeing risk assets move in lockstep again,’ said one trading desk analyst who requested anonymity due to company policy. ‘The Fed’s dovish pivot last week appears to be fueling appetite across markets.’
Bitcoin’s latest surge comes amid growing institutional interest, with spot Bitcoin ETFs continuing to see strong inflows. Meanwhile, stock markets have been buoyed by better-than-expected earnings and softening inflation data. Some strategists caution that the rally may be overextended. ‘Technical indicators show both crypto and stocks are in overbought territory,’ warned a research note from Digital Asset Advisors.
Looking ahead, traders will watch Friday’s nonfarm payrolls report for clues on the Fed’s rate path. Any signs of economic weakness could test the current market optimism.