Bitcoin (BTC) rose briefly into the $84,000 range on short covering early in the week, but fell below $81,000 later in the week, failing to sustain its rebound. While easing concerns over monetary policy and inflows into exchange-traded funds (ETFs) initially helped prices recover, falling stocks and rising oil pushed them back down, making for a week in which buying failed to translate into a sustained rally.
The rise was supported by fading expectations of a rate hike at the Federal Open Market Committee (FOMC) meeting in October. A temporary drop in oil prices on hopes for an improvement in the Middle East situation also prompted renewed buying of risk assets.
Later in the week, however, U.S. tech stocks fell as investors focused on the burden of Meta’s AI-related capital spending, and risk-off selling spilled over into BTC. Oil prices also climbed again as tensions in the Middle East escalated, keeping concerns about inflation and further rate hikes this year alive and weighing on prices.
