Bitcoin rebounds after a sharp decline, boosting crypto stocks (Cryptocurrency:BTC-USD)

After a brief dip, Bitcoin’s strong recovery fueled a surge in cryptocurrency-linked stocks during Wednesday’s pre-market trading.

Tuesday witnessed a volatile session for Bitcoin. The world’s leading cryptocurrency initially reached a new two-year high, surpassing $69,200, before experiencing a sharp decline that brought it down to $60,000.

Analysts attribute the initial sell-off to large block sell orders placed around the $70,000 mark. According to CoinDesk, Binance observed significant sell orders clustered around key technical levels, with over 300 BTC (roughly $20 million) set to be sold at $69,000 and another 500 BTC (around $35 million) planned for sale at $70,000.

However, Bitcoin managed to stage a comeback and ultimately settled near $67,000.

This positive movement in Bitcoin translated to significant gains for several related stocks. MicroStrategy (NASDAQ:MSTR) led the pack with an impressive 10% increase, followed closely by Cipher Mining (NASDAQ:CIFR) with 5.3%, Marathon Digital (NASDAQ:MARA) with 6.3%, and CleanSpark (NASDAQ:CLSK) with 6%. Coinbase Global (NASDAQ:COIN) and Riot Platforms (NASDAQ:RIOT) also enjoyed notable upticks, climbing 5% and 5.6%, respectively.

It’s important to highlight that the premarket gains of crypto-linked stocks such as MSTR, MARA, and RIOT have not fully recovered from their significant losses on Tuesday.

Bitcoin-backed ETFs and managed futures funds: (IBIT), (ARKB), (GBTC), (BRRR), (BTCO), (HODL), (BTCW), (FBTC), (BITB), (EZBC), and (BITO).