Bitcoin (BTC) staged a recovery on Wednesday, climbing from a low of $120,000 to trade around $123,500, up 1.5% in the past 24 hours.
Altcoins also gained, though they lagged behind Bitcoin’s rebound. Ethereum (ETH) rose to $4,331, Ripple (XRP) to $2.82, Solana (SOL) to $220.73, Dogecoin (DOGE) to $0.245, and Avalanche (AVAX) to $28.03, pushing the CoinDesk 20 Index up 2%.
Miners Outperform Amid AI-Driven Optimism
Crypto mining stocks led gains, reflecting expectations of increased demand for high-performance computing. Cipher Mining (CIFR) and Bitfarms (BITF) jumped 11%–12%, while CleanSpark (CLSK) and Hut 8 (HUT) added roughly 6%.
Fed Minutes Signal Potential Rate Cuts
Minutes from the September Federal Reserve meeting revealed most officials still anticipate interest rate cuts later this year, though some argued a cut was unnecessary in September. Policymakers continue to highlight upside risks to inflation.
Gold Remains the Market Leader
Gold extended its rally past $4,000, rising 50% year-to-date, as global investors sought a safe haven amid rising government deficits and volatile bond markets. Japanese yields hit 17-year highs this week, further boosting demand for gold at the expense of risk assets like cryptocurrencies.
Charlie Morris, CIO at ByteTree, said the rally is driven by macro fundamentals rather than speculation:
“Gold’s gains reflect deficits, money printing, and market instability. Bitcoin could benefit once these conditions stabilize,” he noted.
Morris added that Bitcoin often acts as a second-wave beneficiary in macro-driven rotations:
“When gold starts to cool, Bitcoin could be next to gain.”
Matthew Sigel, VanEck’s head of digital asset research, reiterated that Bitcoin could eventually capture up to half of gold’s market value. With gold’s current strength, this projection implies a BTC price of around $644,000, underlining its growing appeal as a “digital gold” for younger investors.
