Bitcoin Price Rises as Risk-Driven Markets Rally, Harris Gains Edge Over Trump
Bitcoin’s price surged on Thursday, following a broader uptick in risk-driven markets, especially in stocks. Despite recent losses, the cryptocurrency showed signs of recovery, climbing 2.8% to $58,115.9. The strength of the dollar and expectations of a smaller interest rate cut by the Federal Reserve limited gains in cryptocurrencies.
The positive momentum in Bitcoin was driven by a tech stock rally, with NVIDIA Corporation CEO’s optimistic comments on artificial intelligence demand. However, Bitcoin remained rangebound between $50,000 to $60,000, struggling to break above $60,000.
The presidential debate on Tuesday also impacted sentiment towards crypto, as Vice President Kamala Harris gained an edge over former President Donald Trump. Harris’ rising odds of victory led to uncertainty in the crypto regulatory outlook, as she is expected to continue scrutinizing the sector for alleged fraud.
Altcoins, including Ethereum and Ripple, advanced alongside Bitcoin, with ADA leading the gains at 5.1%. The cryptocurrency market also reacted to a stronger-than-expected Producer Price Index (PPI) data, hinting at a potential 25 basis point interest rate cut by the Fed.
In summary, Bitcoin’s price recovery was influenced by the broader market sentiment and political developments. Investors should monitor upcoming economic data releases and regulatory actions to make informed decisions about their finances in the volatile cryptocurrency market.