The cryptocurrency market experienced a significant rally on Thursday, with Bitcoin (BTC) rebounding over 7% to an intraday high of $69,487. This sharp reversal came just 48 hours after BTC dipped below $63,000, creating a volatile environment that liquidated over half a billion dollars in leveraged positions.
The primary catalyst for the surge was a blockbuster earnings report from chipmaker Nvidia Corp. (NVDA) for Q4 of Fiscal Year 2026. The company posted record quarterly revenue of $68.1 billion, a 73% year-over-year increase, with data center revenue hitting $62.3 billion (up 75%). This report calmed investor fears about the sustainability of AI infrastructure spending, lifting the Nasdaq 100 by 351 points and the S&P 500 by 56 points, and reigniting a risk-on sentiment that spilled over into crypto assets.
The rally triggered a massive short squeeze, forcing bearish traders to cover their positions. Approximately $576 million worth of futures positions were liquidated within 24 hours, with roughly $470 million stemming from short positions. Bitcoin-specific derivatives accounted for $227 million of these liquidations.
This event underscores a deeper trend: the convergence of Bitcoin mining, AI infrastructure, and capital markets. According to analysis from TheEnergyMag, the AI and data center boom—partly driven by Bitcoin miners pivoting their operations—is being financed through high-yield bond issuance. Companies tied to AI data center development have raised about $33 billion in long-term senior notes over the past 12 months.
The financing costs highlight the perceived risk: while regulated utilities borrow at 4% to 5%, AI- and crypto-linked issuers pay 7% to 9%. Recent bond raises include CoreWeave (9.25%), Applied Digital (9.2%), TeraWulf (7.75%), and Cipher Mining (7.125%). "The message from lenders is clear," wrote TheEnergyMag. "Regulated load... still get treated as infrastructure. AI and bitcoin, even when attached to long-term offtake agreements, are still treated as growth credit."
Meanwhile, Bitcoin mining companies are planning about 30 gigawatts of new power capacity aimed at AI workloads, nearly triple their current operational capacity, signaling a strategic industry pivot.
