Bitcoin (BTC) rebounded on Wednesday, climbing from $120,000 to around $123,500, up 1.5% over the past 24 hours. Altcoins also advanced, with Ethereum (ETH) reaching $4,331, Ripple (XRP) at $2.82, Solana (SOL) trading near $220.73, Dogecoin (DOGE) at $0.245, and Avalanche (AVAX) hitting $28.03. The CoinDesk 20 Index rose 2% in tandem with the crypto recovery.
Crypto Miners Lead Gains
Shares of Bitcoin miners surged amid expectations that artificial intelligence-driven demand for computing power will benefit the sector. Cipher Mining (CIFR) and Bitfarms (BITF) gained 11%–12%, while CleanSpark (CLSK) and Hut 8 (HUT) rose around 6%.
Fed Signals Mixed Rate Outlook
Minutes from the September Federal Reserve meeting indicated that most officials still anticipate interest rate cuts later this year. Some policymakers, however, argued a September cut was unnecessary, while many emphasized inflation risks.
Gold Rally Drives Market Attention
Gold continued its “debasement trade” rally, surpassing $4,000 and posting a 50% gain year-to-date. Rising deficits, volatile bond markets, and expectations of looser monetary policy, coupled with Japanese yields reaching 17-year highs, have driven investor interest in gold as a safe haven over risk assets like cryptocurrencies.
Charlie Morris, chief investment officer at ByteTree, said the gold rally is fundamentally driven:
“Deficits, money printing, and instability are pushing gold higher. Once the rally stabilizes, Bitcoin could emerge as the next beneficiary.”
Matthew Sigel, head of digital asset research at VanEck, reiterated that Bitcoin’s long-term upside remains tied to its appeal as a digital alternative to gold. With current gold gains, his projections suggest a potential BTC price near $644,000, highlighting its growing role as a store of value for younger investors.
