Bitcoin Price Update

Overview

Bitcoin’s price rose on Thursday amid a broader market rally, especially in stocks, but remains fragile after losses last week.

Market Influences

Strength in the dollar limited cryptocurrency gains due to a stronger consumer price index and expectations of a smaller interest rate cut by the Federal Reserve next week. Sentiment was further impacted by a recent presidential debate where Vice President Kamala Harris appeared to gain an advantage over Donald Trump, a pro-crypto candidate. As of 01:16 ET, Bitcoin increased by 2.8%, trading at $58,115.9.

Tech Stock Correlation

Bitcoin’s gains coincided with a surge in technology stocks, especially after positive comments from NVIDIA CEO Jensen Huang regarding AI demand. However, Bitcoin remains confined within a trading range of $50,000 to $60,000, struggling to break above $60,000 amidst a lack of positive developments for cryptocurrency.

Political Context

Bets on a Kamala Harris presidency increased following the debate, with her odds rising to 57 cents. Trump’s odds fell to 47 cents, despite his previous vocal support of the crypto industry. Harris is anticipated to maintain tight regulatory scrutiny on cryptocurrencies, building on the Biden administration’s previous efforts.

Altcoin Performance

Other cryptocurrencies followed Bitcoin’s upward trend, with Ethereum (ETH) up 1.8% at $2,368.10. Among notable movers, ADA saw a 5.1% increase, while meme token DOGE rose by 2.9%. A strong core CPI reading has traders primed for a potential 25 basis point interest rate cut by the Fed next week. Upcoming PPI data will provide more insights into U.S. inflation.