Bitcoin Rally and AI Data Centers: Latest Insights from Crypto Markets

Introduction

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Latest Prices

Bitcoin made a significant rally to surpass $59,000 during the early European trading hours, marking a recovery from below $54,000 at the beginning of the week. However, Markus Thielen, the founder of 10x Research, predicts that the rally may be short-lived, with BTC possibly reclaiming $60,000 before facing resistance. Currently, bitcoin is trading just under $58,500, showing a 1.7% increase in the last 24 hours. The broader digital asset market, as measured by the CoinDesk 20 Index, also saw a rise of about 1.65%.

Data Availability Blockchain Network

• Celestia’s native cryptocurrency, TIA, surged by 25% to reach $7.30 this week, marking the largest gain among the top 100 digital assets by market value.
• Despite the price increase, traders remain cautious and are taking bearish positions on perpetual futures linked to the cryptocurrency. Funding rates, tracked by CoinGlass, have turned negative, currently at -0.1231%, indicating a prevalent bias towards bearish bets.

Bitcoin Miners and AI Data Centers

According to a research report by broker Bernstein, bitcoin miners are increasingly sought after as partners for building AI data centers due to their abundant power supplies and operational capabilities. Recent deals in the AI sector, such as Core Scientific’s 12-year agreement with CoreWeave and Coatue Management’s $150 million investment in Hut 8, have propelled this trend. Bernstein has initiated coverage of miner Iris Energy with an outperform rating and a $26 price target. The broker has also started coverage of Core Scientific with an outperform rating and a $17 price objective. Pre-market trading shows CORZ and IREN up by around 3.5% and 6.5%, respectively.

Chart of the Day

– Omkar Godbole