Bitcoin price today: rises to $58k, but sentiment remains fragile

Investing.com-- Bitcoin’s price rose on Thursday, tracking a broader rally in risk-driven markets, particularly stocks, although the cryptocurrency still remained fragile following steep losses through the prior week. 

Strength in the dollar, following a stronger consumer price index inflation reading- also limited overall gains in cryptocurrencies, as did the prospect of a smaller interest rate cut by the Federal Reserve next week.

Sentiment towards crypto was also dented by a heated presidential debate on late-Tuesday, where Vice President Kamala Harris was seen gaining an edge over former President and pro-crypto candidate Donald Trump.

Bitcoin rose 2.8% to $58,115.9 by 01:16 ET (05:16 GMT). 

Bitcoin recovers tracking tech stock gains, but stays rangebound 

Gains in Bitcoin came tracking an overnight surge in technology stocks, as NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang offered some positive comments on artificial intelligence demand.

But the world’s biggest cryptocurrency still remained entrenched in a $50,000 to $60,000 trading range seen through most of the year. Bitcoin has also struggled to break substantially above $60,000, amid a dearth of positive cues for crypto. 

The token was nursing steep losses from the prior week, amid a broader rout in risk-driven markets. 

Harris victory odds rise, crypto regulatory outlook uncertain

Bets on a Kamala Harris presidency rose after Tuesday’s debate, where she was seen consistently putting Trump on the defensive over several key issues, ranging from abortion rights to international relations. 

Online prediction market PredictIt showed odds for a Harris victory rising to 57 cents from 53 cents on a payout of $1, while Trump’s odds sank to 47 cents from 52 cents. 

Of the two candidates, only Trump has openly declared support for the crypto industry, although he has shied away from mentioning the industry in more mainstream events, such as the Republican national convention, or even the presidential debate. 

Harris, on the other hand, is expected to continue the Biden administration’s scrutiny of the sector over its alleged tenacity for fraud. This stance saw the Securities and Exchange Commission enact a series of high-profile crackdowns against crypto over the past two years.

Crypto price today: Altcoins advance with PPI data, Fed in focus 

Broader cryptocurrency prices tracked gains in Bitcoin, with world no.2 crypto Ether up 1.8% at $2,368.10.

SOL, XRP, ADA and MATIC drifted higher, with ADA leading gains in the pack with a 5.1% increase. Among meme tokens, DOGE rose 2.9%. 

A stronger-than-expected reading on core CPI saw traders pricing in a greater possibility the Fed will cut interest rates by 25 basis points next week, instead of a bigger 50 bps cut.

But before that, producer price index data due later on Thursday is set to offer more cues on U.S. inflation.