Bitcoin (BTC) rallied toward $66,000 after Tuesday’s gains in the US stock market, as cryptocurrencies sought to halt their 2026 slump.
Key takeaways:
Bitcoin rallied above $66,000 on Wednesday, recovering alongside US stocks.
Bitcoin Coinbase Premium Index flipped positive amid $258 million in ETF inflows.
While BTC’s correlation with stocks and gold is at its weakest since 2022, it historically signaled significant upside upon reversion.
BTC/USD hourly chart. Source: Cointelegraph/TradingView
BTC price recovers in tandem with US equities
Bitcoin’s recovery Wednesday aligns closely with similar rebounds in the US stock market, with AI and tech stocks leading the market higher.
Source: The Kobeissi Letter
The tech-focused Nasdaq led the recovery with 1.05% daily gains, while the S&P 500 rose 0.68%. The Dow locked in a 421-point gain, closing the trading day on Tuesday 0.86% higher.
Related: Bitcoin bounces to $66K as rumors swirl over Jane Street selling algorithm
Crypto-related stocks also saw moderate gains, with crypto exchange Coinbase (COIN) rising by 1.12% and Strategy (MSTR) gaining 0.73%.
24-hour performance of US stocks. Source: Financial Visualizations
The swift recovery of US equity markets appears to have played a role in easing negative pressure on crypto investors looking to cut risk asset exposure.
This is evidenced by the Bitcoin Coinbase Premium Index, a metric that tracks the price difference between BTC on Coinbase and Binance, which has flipped positive for the first time since Jan. 15.
This means “US buyers are stepping in,” said analyst Nic in a post on Wednesday, adding that the index needs to stay positive to ensure sustained buying pressure.
Bitcoin’s Coinbase Premium Index. Source: CoinGlass
The return of demand in the US was also reflected by Bitcoin ETFs, which recorded $258 million in net inflows on Tuesday.
Bitcoin won’t stay disconnected forever: Analysis
Bitcoin, which is often viewed as a risk asset in the short term, has frequently moved in tandem with the stock market, particularly the S&P 500.
The past six months have seen a sustained period of this…
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