Bitcoin Rises Amid Gains in Technology Stocks
The world's largest cryptocurrency rose 1.2% to $80,948.5.
Bitcoin rose on Wednesday amid gains in technology and chipmaker stocks. Investors are awaiting the US Federal Reserve’s (Fed) decision on interest rates.
The world’s largest cryptocurrency gained 1.2% to reach $80,948.5. Bitcoin had fallen to $79,496.8 earlier in the week. Other cryptocurrencies also rose, recovering some of their previous losses.
The rally in technology stocks has also had a positive impact on the cryptocurrency market. Strong financial results from memory chip manufacturer SK Hynix boosted interest in artificial intelligence and technology stocks. This rally increased investors’ appetite for riskier assets, supporting gains in cryptocurrencies.
However, growing interest in AI stocks in recent months has put pressure on the cryptocurrency market. Some investors see greater growth potential in shares of technology companies.
Bitcoin could end October down 3.2%, potentially marking its second consecutive annual October decline. The historical upward trend associated with October, often referred to as “Uptober,” has yet to materialize this year.
Investors are focused on the Fed’s interest rate decision. The central bank is expected to keep its rate unchanged at 4%. Persistent inflation in the US and rising energy prices amid the conflict in the Middle East are increasing market uncertainty. Higher interest rates could reduce demand for risky assets such as Bitcoin.
Other cryptocurrencies also gained ground. Ether rose 2.2% to $2,355.47, while XRP climbed 2.4% to $1.3275. Solana gained 2.5%, Cardano rose 1.7%, and BNB advanced 1.4%.