Bitcoin rounds stability with geopolitics, AI boom and high interest rates

Bitcoin was hovering around stability this Wednesday afternoon (10), still in the US$61,000 range given the threat of new attacks from the United States against Iran, which keeps tensions high. The prospect of a rise in interest rates by the Fed (Federal Reserve) also limits the gains of the digital currency, given the CPI (consumer price index).

At around 4:08 pm (in Brasília), bitcoin rose 0.09%, to US$61,860.84, while ethereum fell 1.3%, to US$1,626.36, according to the Binance platform.

The main cryptocurrency had difficulty maintaining a high above US$62,000, amid threats of new US attacks against Iran later today following last night's offensive. On the other hand, the Iranians stated that the bombings were "war crimes".

In the assessment of the CEO of consulting firm deVere, Nigel Green, bitcoin's recent movement is just a "moderate" crypto winter compared to previous market cycles.

For the expert, the currency is pressured by the "rapid changes" in interest rate expectations in the US, as well as by the boom in artificial intelligence as a destination for investment capital.

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"For much of the last decade, bitcoin was one of the main bets driven by Fomo (fear of missing out). Today, a significant portion of that enthusiasm is being directed towards artificial intelligence, technology and the next generation of transformative companies", he says.

Faced with an increase in line with expectations in the US CPI, market bets for monetary tightening remain divided between October and December, according to a survey by the CME Group monitoring tool. For FxPro, expectations limit bitcoin's short-term recovery.

*With information from Dow Jones Newswires.

Source: CNN