Bitcoin Recovers Ground as Dollar Weakens, Tech Recovers

Dow Jones10-16 17:05

Bitcoin rose back above $82,000 as the weaker dollar and recovering risk sentiment helped support crypto assets.

The cryptocurrency rose 0.25% to $82,205 after falling as low as $79,770 on Thursday, when a sharp flight from artificial-intelligence stocks prompted a broader pullback from risk assets including crypto. Ether also recovered Friday, rising 0.3% to $2,457.

Bitcoin's move in tandem with AI stocks demonstrates crypto's vulnerability to broader financial market uncertainty, "particularly when investors reduce exposure to highly volatile assets," said Naeem Aslam, chief investment officer at Zaye Capital Markets.

Flows recovered later Thursday as investors moved to buy the dip. Bitcoin exchange-traded funds ended the session with net inflows of $5.1 million, according to crypto data platform CoinGlass. Flows were concentrated in BlackRock's bitcoin ETF, which drew $205.78 million, offsetting a pullback in other funds.

Crypto assets were helped by dimming expectations for a near-term Federal Reserve rate hike. Fed Chairman Kevin Warsh avoided sounding a clearly hawkish or dovish tone during a moderated conversation in Bangkok.

Looking ahead, "bitcoin's immediate outlook depends on whether declining Treasury yields and renewed institutional inflows can offset inflation-driven monetary tightening concerns," Zaye Capital Markets' Aslam said.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment