Bitcoin Rises Following Tech Rally, But Remains Volatile Amid U.S. Election and Inflation Concerns

Bitcoin’s price saw an uptick on Thursday, climbing 2.8% to $58,115.9 by 01:16 ET (05:16 GMT), tracking gains in broader risk-driven markets, especially tech stocks. Despite this recovery, the cryptocurrency remains fragile after suffering significant losses the previous week. Strength in the U.S. dollar, driven by a stronger-than-expected consumer price index (CPI) inflation report, and the likelihood of a smaller 25 basis point interest rate cut by the Federal Reserve next week limited Bitcoin’s overall gains.

Bitcoin Follows Tech Stock Rally but Remains Rangebound
Bitcoin’s recovery followed a surge in technology stocks, notably driven by NVIDIA Corporation’s CEO, Jensen Huang, who provided optimistic comments on artificial intelligence demand. Despite this, Bitcoin remained within the $50,000 to $60,000 trading range, which has been its pattern for much of the year. The cryptocurrency struggled to surpass the $60,000 mark, lacking strong bullish signals.

Harris Gains Ground in Debate, Uncertainty Over Crypto Regulation
The U.S. presidential debate on Tuesday saw Vice President Kamala Harris gaining an edge over former President Donald Trump, as indicated by a rise in her PredictIt odds to 57 cents from 53 cents. In contrast, Trump’s odds fell to 47 cents from 52 cents. Trump is seen as more favorable to the crypto industry due to his previous declarations of support, although he avoided discussing cryptocurrency during the debate.

Harris, meanwhile, is expected to maintain the Biden administration’s tough stance on crypto, which has included several high-profile crackdowns on the industry over the past two years.

Altcoins Follow Bitcoin’s Lead
The broader cryptocurrency market mirrored Bitcoin’s rise, with Ether climbing 1.8% to $2,368.10. ADA led gains among major altcoins with a 5.1% rise, while SOL, XRP, and MATIC also saw modest increases. Meme token DOGE was up 2.9%.

Traders are awaiting the release of producer price index (PPI) data later on Thursday for further indications of U.S. inflation trends ahead of the Federal Reserve’s rate decision next week.