After a disastrous day, Bitcoin is rocketing back.
Now back to $69,881, up $7,070 on the day, the rally just sent badly damaged stocks like Strategy (MSTR) back to $131.43 (up 23%). Coinbase Global (COIN) is up $16 a share, or by 11%. MARA Holdings (MARA) is up 21%, or by $1.41. Riot Platforms (RIOT) is up 18%.
Holding support dating back to mid-2024, Bitcoin is also starting to pivot from overextensions on RSI, MACD, and Williams’ %R. The last time Bitcoin became this technically oversold, the digital currency rallied from $84,639 to a high of $97,943.
Unfortunately, as we noted earlier, according to The Tech Buzz, the “recovery might be short-lived. Institutional investors who bought in via ETFs at an average price of $90,000 are now sitting on massive losses, and analysts warn the floor could drop out to $50,000 before summer hits.”
“The Bitcoin market is facing a legitimacy crisis as institutional investors who entered near the top exit en masse, creating liquidation cascades that threaten to push prices toward $50,000. With over $2.8 billion in positions already wiped out and ETF holders underwater by massive margins, the path of least resistance appears to be down,” they added.
Goldman Sachs says investors should buy the dip in Vistra (NYSE: VST), noting that it should benefit from its deal with Meta. As noted by Goldman Sachs, the deal increased its 2027 EBITDA estimates by 5%.
The firm has a $205 price target on the stock.
“In our view, the Meta deal signaled that the company is able to secure sizeable PPA contracts with a shorter ramp, even in the face of continued policy uncertainty and affordability rhetoric,” they said, as quoted by CNBC.
“Before Meta’s PPA, Vistra had only announced one other PPA with an undisclosed hyperscaler for half of Comanche Peak’s nuclear generation (1.2GW) and minor impact to EBITDA (~1% increase to 2028E) given the ramp time expected by the company,” they added.
Live coverage has ended. The full story is below.
Markets are rocketing higher this morning.
Not only are tech stocks starting to pop again, but Bitcoin (which fell about $10,000) yesterday, starts to stabilize and pivot.
At the moment, the S&P 500 is up about 0.5%, or by 32 points. The SPDR S&P 500 ETF (SPY) is up 0.57%, or by $3.83. The Dow is up 0.49%, or by 240 points. The tech-heavy Nasdaq is up 0.54%, or 134 points of upside.
Not helping Amazon (NASDAQ: AMZN | AMZN Price Prediction) is down about 9%, or by $19.38 a share. All as its $200 billion AI spending plan spooks investors, much like Alphabet (NASDAQ: GOOG) did yesterday with its aggressive AI spending plans.
Unfortunately, AMZN also missed its fourth-quarter earnings estimates.
The e-commerce giant saw EPS of $1.95, which missed two cents. However, $213.39 billion in revenue beat expectations of $211.33 billion.
Lower Q1 margin guidance didn’t help much either. “The 1Q sales guide for $173.5 [billion]-$178.5bn bracketed Street at $176bn and suggests 13% growth at the midpoint (a 1ppt deceleration vs 4Q), while the profit outlook at $16.5bn-$21.5bn was below Street at $22.2bn, with investments in [international] retail pricing, lower FBA fees, and a $1bn y/y increase in project Leo costs pressuring margins,” said analysts at Bank of America, as quoted by CNBC.
Despite the chaos, analysts at Bank of America are sticking with their buy rating on AMZN with a price target of $275 a share.
Fortunately, other tech names, such as Nvidia (NASDAQ: NVDA), Advanced Micro Devices (NASDAQ: AMD), and Microsoft (NASDAQ: MSFT), are starting to pivot after a rough few days.
After a miserable near-$10,000 pullback in Bitcoin, it’s showing signs of life again. And so are related stocks such as Robinhood (NASDAQ: HOOD) and Strategy (NASDAQ: MSTR).
Flirting with $60,000, more than $2 billion of Bitcoin value was wiped out in forced liquidations.
Unfortunately, according to The Tech Buzz, the “recovery might be short-lived. Institutional investors who bought in via ETFs at an average price of $90,000 are now sitting on massive losses, and analysts warn the floor could drop out to $50,000 before summer hits.”
“The Bitcoin market is facing a legitimacy crisis as institutional investors who entered near the top exit en masse, creating liquidation cascades that threaten to push prices toward $50,000. With over $2.8 billion in positions already wiped out and ETF holders underwater by massive margins, the path of least resistance appears to be down,” they added.
Contact [email protected] for any questions or corrections.
Ian Cooper is a veteran market analyst and investment strategist with more than 20 years of experience covering stocks, commodities, and macro trends. Since 1999, he has helped investors identify market opportunities using a blend of technical analysis, fundamental research, and market sentiment.
He is the creator of the ADD News Flow Strategy, which focuses on trading market reactions to major news events and investor psychology. Cooper was also among the analysts who warned about the 2008 financial crisis and major financial institution collapses ahead of the broader market.
Before joining 247 Wall St., Cooper wrote extensively for InvestorPlace and other financial publications, covering market trends, trading strategies, and investment opportunities.
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