Bitcoin falls back below $67,000, rapidly giving back Wednesday's gains

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TL;DR

Bitcoin drops below $67,000, reversing Wednesday's gains amid a Nasdaq decline post-Nvidia earnings. Circle Financial outperforms with a 40% surge, while other cryptos and related stocks fall.

Bitcoin clawed back above $20,000 after falling below this threshold. (Frederick Bass/Getty Images) — Bears regain control in crypto (Frederick Bass/Getty Images)

What to know:

Bitcoin has given back much of Wednesday's advance in morning U.S. trade.
The declines are coming alongside a 2% drop in the Nasdaq following Nvidia earnings.
Notably outperforming in crypto is Circle Financial (CRCL), now higher by about 40% since its earnings report on Wednesday morning.

Bitcoin has given back much of Wednesday's advance in morning U.S. trade.
The declines are coming alongside a 2% drop in the Nasdaq following Nvidia earnings.
Notably outperforming in crypto is Circle Financial (CRCL), now higher by about 40% since its earnings report on Wednesday morning.

Crypto markets are in retreat during U.S. morning hours on Thursday, rapidly reversing yesterday's strong gains.

Just under $67,000, bitcoin BTC$67,354.42 has pulled back more than 4% after touching $70,000 late on Wednesday. Ether (ETH) and solana (SOL) are showing similar declines.

The selloff comes alongside a 2% decline in the Nasdaq following Nvidia's (NVDA) earnings last night. While Nvidia didn't disappoint, investors are selling the news after the stock's sizable run higher into the earnings event. NVDA is lower by 4.8%, with related names like Broadcom (AVGO), Micron (MU) and Intel (INTC) also sharply lower.

Curiously, the software names are nicely higher today, with the Software Sector ETF (IGV) ahead more than 2%. Bitcoin's correlation with this embattled group has been well documented, but to BTC bulls' chagrin, they apparently only move together when IGV heads lower.

A check of stocks finds Coinbase (COIN) down 1%, Strategy (MSTR) down 2.3%, and Galaxy Digital (GLXY) down 3%. Outperforming is stablecoin issuer Circle Financial (CRCL), up another 3.3% today, and bringing its two-day post-earnings advance to about 40%.

Shares of Circle (CRCL), issuer of the USDC stablecoin, are now higher by 45% in the less than two sessions since its fourth quarter earnings report.
Analysts pointed to a positioning-driven short squeeze rather than fundamentals as fueling the big move.
Hedge funds have built up significant bearish bets against the stock and have lost roughly $500 million in this rally, according to 10x Research's Markus Thielen.

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