Bitcoin Rides Tech Sector's Tailwind Back Above $74,000 — 2nd Update
By Dean Seal and Joseph Wilkins
Bitcoin recovered above $74,000 on Wednesday, riding a tech stock rally higher as investors push past concerns about further interest rate hikes.
Cryptocurrencies are still struggling to regain ground lost after the U.S. midterm elections cast doubt on the artificial intelligence buildout that has propelled tech stocks to new heights. Crypto assets tend to trade in the same direction as the tech sector.
The tech and crypto trade took another hit yesterday on government data showing consumer prices rose 0.4% in October compared with the prior month. That followed a 0.6% increase in September, and above the 0.3% forecast by economists in a Wall Street Journal survey.
High inflation increases the prospects for further interest rate hikes by the Federal Reserve, which would raise the opportunity cost of holding non-yielding assets such as bitcoin and gold. The strong upside surprise in October consumer inflation makes an interest-rate hike by the Fed in December all but certain, and raises the prospect of an even bigger hike in December or a successive hike in January.
Investors started seeing past those concerns on Wednesday, with markets having already priced in a December hike and some mixed messages about how quickly the Fed would tighten policy. Tech got some uplift from strong earnings by CoreWeave, which led the sector higher.
Bitcoin traded up 1.1% at $74,609, albeit still around an 11-week low. The flagship cryptocurrency is down 9% in the past month.
Along with rate concerns, traders are contending with the possibility that Democratic control of Congress could create a more challenging legislative environment for digital assets, according to analysts. Democrats helped vote down a crypto-friendly bill in September.
Ether is 1.1% higher at $2,080.80, having fallen over 3% on Tuesday.
Write to Dean Seal at dean.seal@wsj.com and Joseph Wilkins at joseph.wilkins@wsj.com
(END) Dow Jones Newswires
November 11, 2026 16:16 ET (21:16 GMT)
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