Investing.com– Bitcoin rose on Thursday, tracking a broader rally in risk-on markets, particularly stocks, although the cryptocurrency remained volatile after weighty losses in the previous week.
Strength in the dollar, following a higher reading in the consumer price inflation index, also capped overall gains in the cryptocurrency market, as did the prospect of a smaller rate cut by the Federal Reserve next week.
Crypto sentiment also took a hit following a heated presidential debate slow Tuesday night in which Vice President Kamala Harris emerged victorious over former President and pro-crypto candidate Donald Trump.
rose 2.8% to $58,115.9 at 01:16 ET (05:16 GMT).
Bitcoin regains value, tracking gains in tech stocks, but remains in range
Bitcoin’s gains followed an overnight rally in tech stocks after NVIDIA Corporation (NASDAQ:) CEO Jensen Huang made several positive comments about demand for artificial intelligence.
But the world’s largest cryptocurrency remained rooted in the $50,000 to $60,000 trading range that has been observable for most of the year. Bitcoin has also struggled to break well above $60,000 amid a lack of positive signals for cryptocurrencies.
The token posted weighty losses compared to the previous week amid a broader sell-off in risk-on markets.
Harris’s Victory Chances Grow, Cryptocurrency Regulatory Outlook Uncertain
Bets on a Kamala Harris presidency rose after Tuesday’s debate, during which she consistently put Trump on the defensive on several key issues, from abortion rights to international relations.
Online prediction market PredictIt showed that the odds for a Harris victory rose from 53 cents to 57 cents at a $1 payout, while the odds for a Trump victory fell from 52 cents to 47 cents.
Of the two candidates, only Trump has openly declared his support for the cryptocurrency industry, though he has avoided mentioning it at major events such as the Republican National Convention and even the presidential debate.
Harris, on the other hand, is expected to continue the Biden administration’s scrutiny of the sector over its alleged persistence in fraud, a stance that has led the Securities and Exchange Commission to implement a series of high-profile crackdowns on cryptocurrencies over the past two years.
Cryptocurrency Price Today: Altcoins Rise on PPI Data, Fed in Focus
Prices of broader cryptocurrencies followed Bitcoin’s rise, with the world’s second-largest cryptocurrency rising 1.8% to $2,368.10.
and drifted higher, with ADA leading the gains in the stake with a 5.1% boost. Among meme tokens, it rose 2.9%.
The stronger-than-expected reading had investors pricing in a higher probability that the Fed would cut interest rates by 25 basis points next week, rather than a larger 50 basis point cut.
Before that happens, data due on Thursday is expected to provide more clues about US inflation.
