Bitcoin Left out of Tech-Fueled Stock Rally
By Joseph WilkinsBitcoin slipped to a one-week low overnight after failing to capture the optimism enjoyed by U.S. equity markets following a fresh tech rally.The S&P 500 and Nasdaq composite surged to new records on Tuesday in the latest leg of a tech-led upswing in equities. But bitcoin slipped over 2% on the day, before paring some losses to trade 1.6% lower at $84,120 Wednesday.A new wave of enthusiasm about AI has propelled tech stocks higher, with a narrow set of stocks seemingly able to ignore the global bond selloff. The 10-year Treasury yield rose 4 basis points to 5.310% on Wednesday, while the 30-year yield increased 4.6 basis points to 5.686%, according to Tradeweb. Both remained close to their multidecade highs.An environment of high yields and a strong dollar is holding bitcoin back for now, analysts said."We therefore continue to watch whether improving inflation signals translate into a lasting turn in yields and the [dollar]," Joel Kruger, markets strategist at cryptocurrency fintech LMAX Group, said in a note.Investors are looking ahead to the Federal Reserve's September meeting minutes due Wednesday. In particular, they will look for any clues on the Fed's direction at its October meeting, as markets have recently scaled back expectations of an interest rate hike this month."A cautious tone on further tightening would reinforce the pause the market has priced [for Oct. 28], while a firmer one would raise the odds of a hike sooner," Iliya Kalchev, market analyst at cryptocurrency platform Nexo, said in a note.Write to Joseph Wilkins at [email protected]