Bitcoin mining stocks soared Thursday as bitcoin (BTC) itself traded around its 17-month high.

U.S.-listed mining companies such as Marathon Digital (MARA), Riot Platforms (RIOT) and CleanSpark (CLSK) rallied 10%-12% during the day amid a wider surge in equities. The Dow Jones Industrial Average notched its best day since June.

Crypto-related stocks were benefiting from thawing sentiment on Wall Street following a dismal October, as traders increasingly bet on the Federal Reserve is finished with its historic interest rate hiking cycle.

The S&P 500 and Nasdaq equity indexes advanced for the second consecutive day as investors continue to digest Fed Chair Jerome Powell's slightly dovish remarks Wednesday and decision to leave rates unchanged for the second consecutive month amid signs of easing inflation and decreasing labor costs.

"If you're a crypto trader who believes that a crypto and equity bull market is around the corner, I'd implore you to focus on bitcoin mining stocks to generate the most alpha," Caleb Franzen, founder of Cube Analytics, said in an X/Twitter post.

Coinbase (COIN) also closed the day with an 8.7% advance, but some of those gains were pared back after market close after the cryptocurrency exchange reported lower trading volumes in Q3. The company beat analyst expectations of revenues and earnings.

Cryptocurrencies cool

BTC hovered around the $35,000 mark, just off its highest price level since May 2022.

Ether (ETH), the second largest crypto asset by market capitalization, lingered around $1,800, down nearly 2% over the past 24 hours.

The CoinDesk Market Index (CMI), which is a proxy for the broad crypto market, declined 1.3% over the same period.

Layer 1 network Cardano's native token (ADA) and metaverse platform Decentraland's (MANA) were notable outperformers advancing nearly 6%. Chainlink (LINK), venture capital-backed blockchain Aptos's token (APT) and liquid staking platform Lido's governance token (LDO) tumbled 5%-7%.

Solana (SOL) cooled off after its spectacular rally, doubling its price in two-plus weeks. The token dipped to $40 from a 14-month high of $46.60 yesterday.

The bitcoin (BTC) price rally's floor

Charles Edwards, founder of bitcoin-focused hedge fund Capriole Investments, warned about signs of over-exuberance in the bitcoin derivatives market."All bitcoin derivatives markets are overheated at present," Edwards said. "Stay safe out there."

Crypto trading firm QCP Capital said in a Thursday market update that BTC will likely stabilize around the current level barring a major catalyst, with $32,000 providing a price floor.

"It will take the spot ETF approval for us to start the new exponential leg higher," analysts with the crypto asset trading firm QCP Capital said, referring to the possibility the U.S. Securities and Exchange Commission (SEC) approves a bitcoin-settled exchange-traded fund. "At the same time, we expect only a major rug pull from SEC Chair Gensler will be able to take us back below $32,000 at this stage."