Bitcoin rebounded sharply to $68,349.6 on Thursday, climbing 5.3% as bargain hunters scooped up heavily discounted coins and positive Wall Street momentum spurred a broader crypto recovery. The surge followed a mass liquidation of short positions totaling $468.7 million, triggered by Bitcoin's abrupt price jump. Sentiment had been deeply negative after a near 50% slide from October highs, but today's gains offered some respite, even as the crypto fear and greed index remained stuck at 'extreme fear'.

While Bitcoin's rebound was fueled by dip buying and a short squeeze, Wall Street's gains provided crucial tailwinds. Two days of strong tech sector gains improved risk appetite, though Nvidia's bumper earnings failed to excite investors significantly. The world's most valuable company delivered solid results, but lingering concerns over inventory and Chinese sales weighed on sentiment. Despite today's rally, most cryptocurrencies remain nursing deep losses for the year.

Altcoins broadly extended their recent rebound, with Solana jumping 9.4% to $2,062.71 and XRP rising 7.3% to $1.4468. However, the broader market remains cautious, reflecting the persistent negativity captured by the fear index. Bitcoin's technicals now point towards a potential retest of the $60,000 support level.