Bitcoin Plunges Reverse, Market Rebound Today Accelerates AI-Related Buybacks

The cryptocurrency market showed a dramatic recovery today during early U.S. trading on Tuesday. Bitcoin broke free from recent declines and is now trading around $70.54K, with signs of a rebound clearly emerging after recent consolidation. Ethereum and Solana also rose over 4% in 24 hours, indicating an overall improvement in market sentiment.

As concerns over the AI industry that contributed to Bitcoin’s recent plunge eased, the tech-heavy Nasdaq 100 rose 1.1%, and the broader market represented by the S&P 500 increased by 0.8%. On Wall Street, attention has focused on the potential for existing companies like Intuit and DocuSign, which announced partnerships with AI firm Anthropic, to adapt and coexist rather than be replaced, improving market psychology.

Rebuying in the AI Software Sector Supports the Overall Market

Today, as AI concerns that triggered Bitcoin’s crash eased, the struggling software sector (IGV) rebounded 1.7%. The strong correlation between cryptocurrencies and tech stocks continues, symbolizing the overall market recovery today. Bitcoin’s Fear & Greed Index has fallen to extremely low levels over the past few days—levels not seen even during the 2018 bear market, the 2020 COVID crash, or the 2022 crypto winter. However, this rebounding today suggests that this extreme pessimism was actually a buying opportunity.

Crypto-related companies also participated in this movement. Coinbase saw a modest decline of 0.5–1%, while others like MARA Holdings diverged.

Bitcoin Miners Lead Today’s Rally

The most notable movement is the sharp rise of high-performance computing companies and Bitcoin miners. Major miners such as Bitdeer (BTDR), Cipher Mining (CIFR), Hut 8 (HUT), and TeraWulf (WULF) led the rally with gains of 6–10%. Their increasing ties to AI data center infrastructure have become a key driver of today’s rebound. While often overlooked during Bitcoin’s decline, mining companies are now recognizing new revenue opportunities alongside AI industry growth, reaffirming their long-term growth potential.

Traditional Safe Assets Continue to Face Pressure; Geopolitical Tensions Easing Provides Support

Meanwhile, traditional safe assets declined again today. Gold fell 1.5% during trading hours, and crude oil dropped 0.5%. This is driven by expectations that geopolitical tensions are easing, following Iran’s Deputy Foreign Minister Majid Takht Ravanchi’s statement that “all necessary measures are being taken to reach an agreement with the U.S.”

From a technical perspective, gold is approaching a bear market and is already near historic peak levels on M2-adjusted basis. In contrast, Bitcoin appears to be in a typical correction phase ahead of new cycle highs, with today’s rebound seen as part of this scenario.

The shift from Bitcoin’s crash to today’s recovery reflects not just a short-term rebound but also a change in outlook toward the AI industry combined with easing geopolitical risks. If overall market sentiment continues to improve, further upside remains possible.