Bitcoin climbed on Wednesday as a rally in technology and chipmaking stocks boosted risk appetite ahead of the Federal Reserve’s interest-rate decision, helping cryptocurrencies recover some of their recent losses.
The world’s largest cryptocurrency rose 1.92 percent to $81,284 by 11:35 GMT, rebounding from a low of $79,496.80 earlier this week.
Ether, the second-largest cryptocurrency, advanced 2.14 percent to $2,365.58, while XRP gained 1.9 percent to $1.3276.
Solana rose 2.75 percent, BNB added 2.74 percent and Cardano gained 2.74 percent. Dogecoin climbed 3.96 percent and $TRUMP advanced 2.6 percent.
AI-driven tech rally boosts crypto sentiment
Bitcoin’s gains followed a rally in technology stocks, supported by stronger-than-expected earnings from South Korean memory chipmaker SK Hynix. The results reinforced investor enthusiasm for artificial intelligence and triggered buying across technology and AI-related stocks.
Cryptocurrencies often move in tandem with technology shares, making the sector sensitive to shifts in investor appetite for risk. However, the AI investment boom has also weighed on crypto markets in recent months, as investors have increasingly favoured AI stocks offering clearer fundamentals and growth prospects over more speculative cryptocurrency investments.
Despite Wednesday’s rebound, Bitcoin was on track to end October down 3.2 percent, marking a potential second consecutive annual loss for the month.
The decline comes despite October’s historical reputation for strong cryptocurrency performance, commonly referred to as “Uptober”.
Fed decision in focus
Investors also remained cautious ahead of the conclusion of the Federal Reserve’s policy meeting later on Wednesday, limiting gains across digital assets.
The central bank was widely expected to keep interest rates unchanged, but markets were watching for signals that policymakers could maintain a hawkish stance amid persistent U.S. inflation pressures and rising energy prices linked to the Middle East conflict.
Higher interest rates tend to weigh on speculative assets such as cryptocurrencies by increasing the relative appeal of interest-bearing investments and tightening financial conditions.
The European Central Bank and the Bank of Japan are also expected to leave interest rates unchanged later in the week, with investors assessing the outlook for monetary policy across major economies.
Robinhood shares fall after crypto revenue slump
Meanwhile, shares in trading platform Robinhood fell about 8 percent in premarket trading on Wednesday after a prolonged downturn in cryptocurrency markets dragged its third-quarter profit below analysts’ expectations.
Earnings per share declined 16 percent to 51 cents, missing the 55 cents expected by analysts, according to LSEG estimates. Total net revenue increased 12 percent to $1.42 billion.
However, cryptocurrency revenue plunged 55 percent to $120 million, reflecting weaker activity amid market uncertainty.
Rising oil prices and geopolitical tensions have unsettled financial markets, while heightened volatility has prompted retail traders to scale back speculative positions.
The results underscored the pressure that weaker cryptocurrency trading can place on platforms whose revenues depend partly on retail investor activity, even as broader digital asset prices recovered on Wednesday.
