Bit Digital, Inc. (BTBT), a leading Bitcoin mining company, saw its stock soar 5.12% in pre-market trading on Thursday morning. The rally appears to be driven by the recent volatility in Bitcoin prices, a key factor influencing the performance of crypto mining firms.

Bitcoin, the world's largest cryptocurrency, has been on a rollercoaster ride in recent days. After testing the $100,000 mark, it experienced its worst drop since September, falling 5.1% on Wednesday, as the Federal Reserve signaled a cautious approach to future interest rate cuts. Despite the drop, Bitcoin has since recovered and is currently trading around $100,950.

As a Bitcoin mining company, Bit Digital's fortunes are closely tied to the fluctuations in Bitcoin prices. Higher prices translate into increased profitability for miners, while lower prices can squeeze margins and impact the company's financial performance. The recent price volatility and overall bullish sentiment surrounding Bitcoin are likely contributing factors to Bit Digital's pre-market surge.