A recent surge in cryptocurrency prices has lost momentum as Wall Street’s risk-off sentiment weighed down the broader market, particularly impacting technology stocks.
As October concludes, Bitcoin is experiencing a slight downturn, trading around $70,600 in early U.S. markets, reflecting a decline of approximately 2.35% over the last 24 hours. Meanwhile, Ethereum (ETH/USD) has dropped 4.7%, and Polkadot has fallen by about 5%. Despite this setback, Bitcoin has gained over 8% this week. Notably, spot Bitcoin exchange-traded funds (ETFs) reported significant inflows, with $893 million added on Wednesday, marking the second consecutive day surpassing the $850 million threshold. This surge in demand has largely been driven by BlackRock’s IBIT, which alone accounted for $872 million.
Traders are closely monitoring earnings season while also preparing for the upcoming U.S. presidential election and essential economic reports, including the next nonfarm payroll numbers, as they seek indicators of potential rate cuts from the Federal Reserve.
According to analysts at Vital Knowledge, “Stocks are sliding in the US this morning for a variety of reasons, including underwhelming mega-cap tech earnings from Wednesday night, with META warning about rising costs and MSFT’s December quarter revenue guidance falling short of expectations.”
On Thursday, Wall Street experienced a decline, driven by Microsoft and Meta’s warnings regarding increased artificial intelligence expenses, which dampened enthusiasm for large-cap stocks. Meta Platforms Inc. shares fell 2.8%, while Microsoft Corporation shares dropped 5.1%, despite both companies surpassing earnings expectations in their reports released Wednesday. Adding to the market pressure, the U.S. 10-Year Treasury yield climbed above 4.3%, further weighing on stock performance.
Bitcoin has been inching closer to its all-time high this week, rebounding from around $71,000 to over $73,500 by Tuesday. This positive trajectory coincides with the upcoming U.S. elections, a period that many traders typically consider bullish for the markets, regardless of the outcome.
Polls indicate a competitive race between Donald Trump and Kamala Harris, fueling market speculation as Bitcoin approaches its all-time high of $73,798, last reached in March. The recent price surge positions the leading cryptocurrency on the cusp of this historic milestone, adding to the pre-election excitement in the financial markets.
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