Bitcoin staged a significant recovery in early U.S. trading on Tuesday, pushing back above the $64,000 level after a sharp decline. The leading cryptocurrency recently traded at $64,200, marking a notable rebound from the morning's low of $62,500. Despite the rally, Bitcoin was still down approximately 0.75% over the past 24 hours, following a Monday session where it crashed below $63,000 to $62,950, representing a 4.6% drop at the time.
The broader crypto market mirrored Bitcoin's initial downturn and subsequent recovery. Major altcoins including Ether (ETH) and Solana (SOL) also narrowed substantial early losses. Other assets like XRP, Dogecoin (DOGE), BNB, and SUI were reported to be in the red during the sell-off, with Bitcoin Cash (BCH) crashing over 11%.
The rebound tracked a broader recovery in risk assets, highlighting crypto's tight correlation with technology stocks. The iShares Software Sector ETF (IGV) bounced 1.7% after recent heavy losses. The gains were partly fueled by announcements from companies like Intuit and DocuSign, which revealed partnerships with AI firm Anthropic, signaling that established tech firms might adapt to AI disruption rather than be displaced.
Meanwhile, traditional safe havens lost ground as geopolitical tensions appeared to ease. Gold fell 1.5%, and crude oil slipped 0.5%. Reports cited Iran's deputy foreign minister, Majid Takht-Ravanchi, stating the country is "ready to take any necessary step to reach a deal with the U.S.," tempering fears of an imminent military strike.
The tech-heavy Nasdaq 100 traded 1.1% higher, and the S&P 500 was up 0.8%. This positive sentiment spilled over into the crypto mining sector, with high-performance computing firms and Bitcoin miners—increasingly tied to AI data center infrastructure—joining the move higher. Bitdeer (BTDR), Cipher Mining (CIFR), Hut 8 (HUT), and TeraWulf (WULF) led gains, rallying between 6% and 10%. Much of the rest of the crypto-related stock sector was modestly lower, with Coinbase (COIN), MARA Holdings (MARA), and MicroStrategy (MSTR) showing losses of 0.5% to 1%.
