Bitcoin (BTC) and other cryptocurrencies are recovering to start the trading week as investors buy the dip in technology stocks.
The price of Bitcoin is back above $82,000 U.S. on Oct. 19 after falling below $80,000 U.S. at the end of the previous week.
Cryptocurrencies came under pressure as U.S. stocks, particularly those tied to the artificial intelligence (A.I.) trade, fell sharply in recent days.
Growing concerns about an A.I, bubble led the technology-heavy Nasdaq Composite index to fall more than 500 points on Oct. 16, dragging digital assets lower as a result.
Bitcoin, the largest cryptocurrency by market capitalization, ended the last trading week down 2% as investors appeared to grow more risk averse and rotated capital into blue-chip stocks.
However, a rebound in riskier technology and A.I,-related equities is now taking place, with the Nasdaq up more than 360 points in premarket trading on Oct. 19.
This is giving a boost to crypto, with Bitcoin’s price up 2% in the past 24 hours. Cryptocurrencies trade 24 hours a day, seven days a week.
Analysts and investors will be watching closely to see if the recovery is sustainable or a brief bounce amid the start of a prolonged downturn in riskier areas of the market.
Futures traders are now pricing in one more 25-basis point interest rate hike from the U.S. Federal Reserve this year, most likely in December.
Rising interest rates tend to be negative for risk assets such as crypto and stocks.
BTC is trading at $82,500 U.S. early on Oct. 19.
