Key Takeaways
- • Bitcoin rose 1.2% to $80,948.50 by 01:27 ET (05:27 GMT) on Wednesday, recovering from a low of $79,496.80 hit earlier in the week, according to Investing.com.
- • A rally in technology and chipmaking stocks, led by bumper earnings from memory chip maker SK Hynix, lifted risk appetite and spilled over into crypto markets.
- • Bitcoin was set to finish October down 3.2%, its second consecutive year of October losses, as the historical "uptober" pattern failed to materialize.
- • Investors remained cautious ahead of a Federal Reserve rate decision later Wednesday, with markets watching for a potentially hawkish outlook amid sticky U.S. inflation and higher energy prices tied to the Middle East war.
- • Broader altcoins also recovered, with Ethereum-linked price moves of +2.2% to $2,355.47 and XRP-style peers posting gains of 1.4% to 3.4%, while the Bank of England and another central bank were also expected to hold rates and sound hawkish.
Summary
Bitcoin, the world's largest cryptocurrency, edged higher on Wednesday, rising 1.2% to $80,948.50 by 01:27 ET (05:27 GMT), according to Investing.com. The move represented a recovery from a low of $79,496.80 reached earlier in the week, and broader crypto prices also advanced as the market regained some recent losses.
The gains were driven largely by a rally in technology and chipmaking stocks. Shares surged after bumper earnings from memory chip giant SK Hynix reinforced the artificial intelligence trade and sparked buying across battered tech and AI names. Because crypto has tended to move in lockstep with technology stocks, the rally spurred some buying into digital assets. The report noted, however, that the AI trade had also weighed on crypto in recent months as investors favored clearer fundamentals and upside in high-flying AI equities over speculative exposure to crypto.
Bitcoin's advance was tempered by caution ahead of a Federal Reserve policy decision later Wednesday. The central bank was widely expected to hold rates, but investors were focused on the possibility of a hawkish outlook, particularly given increasingly sticky U.S. inflation and rising energy prices linked to the Middle East war. Higher rates typically weigh on speculative, risk-heavy assets such as crypto. Beyond the Fed, other central banks were also expected to leave rates unchanged this week while signaling a hawkish stance.
Within the broader market, altcoins posted a mild recovery. The second-largest cryptocurrency rose 2.2% to $2,355.47, while several other major tokens gained between roughly 1.4% and 2.5%, and memecoins advanced by as much as 3.4%. Despite Wednesday's rebound, Bitcoin remained on track for a 3.2% decline in October, its second straight year of losses for the month, as the historically positive "uptober" trend did not materialize.
The gains were driven largely by a rally in technology and chipmaking stocks. Shares surged after bumper earnings from memory chip giant SK Hynix reinforced the artificial intelligence trade and sparked buying across battered tech and AI names. Because crypto has tended to move in lockstep with technology stocks, the rally spurred some buying into digital assets. The report noted, however, that the AI trade had also weighed on crypto in recent months as investors favored clearer fundamentals and upside in high-flying AI equities over speculative exposure to crypto.
Bitcoin's advance was tempered by caution ahead of a Federal Reserve policy decision later Wednesday. The central bank was widely expected to hold rates, but investors were focused on the possibility of a hawkish outlook, particularly given increasingly sticky U.S. inflation and rising energy prices linked to the Middle East war. Higher rates typically weigh on speculative, risk-heavy assets such as crypto. Beyond the Fed, other central banks were also expected to leave rates unchanged this week while signaling a hawkish stance.
Within the broader market, altcoins posted a mild recovery. The second-largest cryptocurrency rose 2.2% to $2,355.47, while several other major tokens gained between roughly 1.4% and 2.5%, and memecoins advanced by as much as 3.4%. Despite Wednesday's rebound, Bitcoin remained on track for a 3.2% decline in October, its second straight year of losses for the month, as the historically positive "uptober" trend did not materialize.
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