Bitcoin ends three consecutive declines, approaching the $70,000 mark. Circle(CRCL.US) surges over 35%

Under the influence of a phased recovery in risk appetite and a slight rebound in tech stocks, the cryptocurrency market has experienced a clear correction rally.

According to WisdomTree Finance APP, Bitcoin briefly approached the $70,000 mark on Wednesday, ending a three-day losing streak. Meanwhile, stablecoins, crypto-related stocks, and some fintech companies’ shares also strengthened, indicating a rebound in market sentiment.

During the New York trading session, Bitcoin rose as much as 8.5% to approximately $69,500, marking its largest single-day gain since February 6. Ethereum also surged about 12% to around $2,085. The last time Bitcoin touched $70,000 was on February 16.

Market analysts point out that the rebound in crypto assets is closely related to the stabilization of the US stock market. After US President Trump defended the economy yesterday, risk asset sentiment improved. Previously, the US Supreme Court ruled that the Trump administration lacked the authority to impose the so-called “reciprocal tariffs” under emergency powers, causing market turbulence. Trump then cited other legal bases, stating he would push for a 15% global tariff, which was one of the main reasons for the sharp decline in crypto markets earlier this week. However, in his latest speech, Trump did not mention digital assets.

ZeroStack CEO Daniel Reis-Faria said that recent US market demand for crypto assets has been generally weak, but funds are rotating into altcoins, with some outperforming Bitcoin. Caroline Mauron, co-founder of Orbit Markets, believes that this rally mainly reflects a “bottom-fishing” behavior after a significant correction. If Bitcoin reclaims the $70,000 level, market narratives could shift.

However, many industry insiders remain cautious about the sustainability of the rally. Jake Ostrovskis, head of OTC trading at Wintermute, pointed out that after such a large decline, it’s premature to interpret the short-term rebound too optimistically. Unless Bitcoin re-enters the $75,000 range, it will be difficult to attract more serious capital. Data shows that about 9 million Bitcoin (roughly 45% of circulating supply) are still at a loss, meaning many investors are taking profits or reducing positions during each rebound, which suppresses upward momentum.

Data from research firm Glassnode also indicates that the overall crypto market remains under pressure, with CoinGecko reporting that the total market cap of crypto assets has fallen more than 20% compared to a year ago. Bitcoin itself has declined nearly 50% from its peak of around $127,000 in October last year. FxPro chief market analyst Alex Kuptsikevich compares the current situation to 2022, when after a sharp drop, the market experienced a prolonged sideways correction before entering a new upward cycle.

In terms of crypto-related stocks, stablecoin issuer Circle (CRCL.US) saw a significant surge on Wednesday. The company reported Q4 earnings that greatly exceeded expectations, with earnings per share of $0.43, well above the expected $0.16; revenue and reserve income totaled $770 million, up 77% year-over-year. Boosted by this, Circle’s stock rose over 35% to about $81.67, one of the largest single-day gains since its IPO last year. The USDC circulating supply is projected to reach $75.3 billion by the end of 2025, up 72% year-over-year, maintaining its position as the second-largest stablecoin globally.

Circle CEO Jeremy Allaire stated that USDC’s applications in global payments, corporate treasury management, and on-chain finance continue to expand. CFO Jeremy Fox-Green noted that USDC’s business performance has somewhat “decoupled” from Bitcoin and other crypto asset price fluctuations. Analysts believe this helps the market reframe stablecoins as infrastructure for trading rather than speculative assets.

Meanwhile, Coinbase (COIN.US) shares continued their rally for the second consecutive day. The company announced full US-based commission-free trading of stocks and ETFs yesterday, available 24 hours on trading days, with fractional shares starting at just $1. Coinbase’s stock rose 13.52% on Wednesday, making it one of the best performers in the S&P 500 that day. Coinbase CEO Brian Armstrong said the company is moving toward becoming an “all-in-one exchange” and plans to launch tokenized stocks in the future.

In this “wallet war,” fintech firms like Robinhood (HOOD.US) and SoFi Technologies (SOFI.US) also performed well. Robinhood’s stock rose 5.64%, and SoFi increased 3.38%. However, market analysts note that these stocks remain highly correlated with Bitcoin. Since Bitcoin peaked last October, Coinbase and Robinhood have fallen 52% and 46%, respectively.

Analysts believe that Coinbase’s accelerated transition to a multi-asset platform could reduce its dependence on crypto trading volume, but whether it can retain users and generate stable revenue remains to be seen. Overall, ahead of earnings reports from giants like Nvidia, market sentiment has temporarily stabilized, and crypto assets along with related stocks have experienced a technical rebound. However, the medium- to long-term trend will still depend on macro liquidity, regulatory policies, and further shifts in risk appetite.