Bitcoin Rebounds Above $85,000 as Crypto Markets Post Gains Alongside U.S. Stocks

Bitcoin Surges Above $85,000 as Crypto Markets Rally Alongside Traditional Assets

  • Bitcoin surged above $85,000 on Friday, rising 4.7% in 24 hours as cryptocurrency markets rebounded alongside traditional stocks.
  • BTC reclaimed its position above the 200-day moving average, a critical technical indicator that could signal bullish momentum if maintained.
  • The broad recovery extended across all CoinDesk 20 Index cryptocurrencies, with ChainLink, Solana, and Sui leading the gains as risk appetite returned to markets.

Cryptocurrency markets staged a significant recovery on Friday, breaking a period of lackluster performance as investors across various asset classes showed renewed risk appetite. Bitcoin briefly touched $85,000 during U.S. trading hours before settling at $84,400, marking a 4.7% increase over the previous 24 hours.

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The upward momentum wasn’t limited to Bitcoin, as all digital assets tracked in the CoinDesk 20 Index posted positive returns. Notable performers included Chainlink (LINK), Solana (SOL), and SUI, which registered the most substantial gains among major cryptocurrencies.

This crypto market revival coincided with a broader resurgence in traditional financial markets. The S&P 500 climbed 1.7% while the technology-focused Nasdaq index jumped 2.3%. Meanwhile, Gold—which had recently outperformed Bitcoin during the market downturn—retreated below the $3,000 threshold after achieving this historic milestone just a day earlier.

Friday’s rally propelled Bitcoin back above its 200-day moving average after briefly dipping below this critical technical indicator for the first time since last August’s market correction. This benchmark, currently positioned at $83,767, serves as an important reference point for traders evaluating long-term price trends. In bull markets, the 200-day average typically functions as a support level where prices tend to bounce, while falling below it often signals increased caution or bearish sentiment.

Market participants are closely watching whether Bitcoin can maintain its position above this technical threshold. A daily close above the 200-day moving average would provide cryptocurrency bulls with evidence that the recent correction may have run its course. Conversely, if Bitcoin fails to hold this level, technicians suggest it could indicate further downside potential.

Cross-asset trader Bob Loukas noted that both Bitcoin and traditional equities appear poised for continued recovery, at least temporarily, as they rebound from oversold conditions. “Feels like should be close to end of panic, for now at least, and spend at least a few weeks back recovering,” he commented earlier this week, adding that markets would then need to “reassess” the situation.

The cryptocurrency market’s positive performance comes as a welcome reprieve for digital asset investors who had witnessed Bitcoin struggle to maintain momentum in recent weeks despite its substantial year-to-date gains.

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