Bitcoin rose on Thursday, extending its gains after posting huge profits in the third quarter, as optimism about more flexible US regulations sparked a sustained wave of buying at lower levels.
However, the surge in the cryptocurrency market lost momentum as the fourth quarter began, under pressure from rising Treasury bond yields, with markets anticipating further interest rate hikes by the Federal Reserve.
Bitcoin rose 1.5% to $84,307.10 by 9:21 AM.
Bitcoin is advancing as the PCE inflation index declines, but rising returns are weighing it down.
Bitcoin rose to $85,600.00 on Wednesday following the release of US Personal Consumption Expenditures (PCE) price data that came in slightly below expectations. This data fueled hopes that lower inflation would prompt the Federal Reserve to raise interest rates at a slower pace.
However, Bitcoin's gains were partially offset by rising Treasury yields, which hit new multi-year highs on Wednesday despite declining inflation figures.
Optimism about artificial intelligence, following Micron Technology's impressive financial results, also contributed to a shift in flows towards technology and chip stocks, weighing on cryptocurrency prices.
Attention is now focused on the US non-farm payrolls data for August, due on Friday, for further clues about interest rates and the world's largest economy.
Expectations for an interest rate hike in October have eased following seemingly more cautious comments from a Federal Reserve official this week.
Visa and Mastercard-backed stablecoin officially launched
A report by CoinDesk stated that a stablecoin backed by payment giants Visa, Mastercard and Stripe, along with cryptocurrency trading platform Coinbase, officially launched on Wednesday.
The currency, OpenUSD, was initially unveiled in June and launched on Coinbase’s Ethereum, Solana and Base networks, and Stripe’s Tempo network, according to CoinDesk.
Open Standard CEO Zach Abrams told CoinDesk that the company is targeting the banking and cross-border payments sectors, as well as credit card settlement, institutional trading, and lending.
The company has more than 140 partners in the payments, banking, cryptocurrency and technology sectors, including BlackRock Inc., BNY and Standard Chartered.
Cryptocurrency prices today: Altcoins rise after a strong third quarter
Prices for the broader cryptocurrency market also rose on Thursday, with major altcoins continuing their gains after significantly outperforming Bitcoin over the past three months.
Ether, the world's second-largest cryptocurrency, rose 2% to $2,714.83, after jumping nearly 70% in the third quarter.
XRP rose by 0.80%, while Solana added 0.90%. Cardano climbed 4.20%, and BNB gained 1.80%.
In the meme currency market, Dogecoin rose by 2.90%, while $TRUMP climbed by 7.30%.
