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Bitcoin Surges Above $59K Again, but Experts Warn of Short-Lived Rally

Bitcoin’s price surged to over $59,000 in the early European trading session, marking a significant recovery from below $54,000 at the beginning of the week. Analysts are cautiously optimistic about the rally, with Markus Thielen, founder of 10x Research, suggesting that while there is a potential for Bitcoin to reclaim $60,000, it might be a short-lived move. Thielen noted that the $55,000-$56,000 range is establishing a base from a technical analysis standpoint. Despite this positive momentum, the broader digital asset market, as indicated by the CoinDesk 20 Index, also saw a modest increase of about 1.65%.

In another development, Celestia’s native cryptocurrency, TIA, experienced a remarkable 25% surge to $7.30 this week, making it the top gainer among the top 100 digital assets by market capitalization. However, traders appear skeptical of this sudden spike and have started taking bearish positions by shorting perpetual futures linked to the cryptocurrency. Funding rates across exchanges have turned negative, dropping to -0.1231%, the lowest levels seen since January, indicating a prevailing bias towards bearish bets over the next six months.

Moreover, Bitcoin miners are being viewed as attractive partners for constructing artificial intelligence (AI) data centers due to their surplus power supplies and operational capabilities, according to a report by broker Bernstein. Recent deals in the AI sector, such as Core Scientific’s 12-year agreement with CoreWeave and Coatue Management’s substantial investment of $150 million in Hut 8, have been identified as key drivers for the industry. Bernstein initiated coverage of miner Iris Energy with an outperform rating and a price target of $26. Similarly, Core Scientific received an outperform rating with a $17 objective. Pre-market trading showed CORZ and IREN up approximately 3.5% and 6.5%, respectively.

The Chart of the Day showcases the top 10 meme coins by market value, with Solana-based MONK displacing dogwifwhat (WIF) as the fourth largest meme coin. BONK’s treasury proposed burning 84 billion coins, propelling its market value above WIF. This data is sourced from Coingecko.

In conclusion, the cryptocurrency market continues to witness dynamic movements and evolving trends, with Bitcoin’s price action, Celestia’s TIA token surge, and the growing interest in Bitcoin miners for AI data center projects shaping the current landscape.

– Omkar Godbole