- Bitcoin gained 1.3% to just above $82,700 during Wednesday’s Asian morning, holding around the $83,000 level after strong results from SpaceX and Super Micro Computer revived risk appetite for the AI trade. SpaceX rose 8% and Super Micro 16% in extended trading, while Nasdaq 100 futures climbed 1%.
- The rally was broad across major tokens. Zcash led with an 11% jump to about $1,260 after developers set the activation block for its NU7 upgrade, HYPE and DOGE each gained more than 3%, XRP rose nearly 3% to $1.33 and ether added 2% to about $2,450, while BNB and SOL gained 1% to 2% and TRX was flat.
- Asian equities moved with crypto, with South Korea’s Kospi up 3.7% and Taiwan’s Taiex up 1.4%. The AI bid was not universal, though: Australian data center developer NextDC fell 40% after cutting its outlook, and Brent crude climbed above $110 a barrel on attacks on shipping around the Strait of Hormuz.
- Some analysts see the downturn nearing its end. Hashdex noted that bitcoin’s bear phase had lasted 359 days as of Sept. 30, against 361, 377 and 411 days for the previous three since 2011, and short-term holders now own just 16% of supply, the lowest share since January 2023.
What Happened?
Bitcoin edged higher on Wednesday as AI-linked earnings lifted technology stocks across Asia. Zcash outperformed after developers fixed the mainnet activation height for NU7, an upgrade that cuts block times from 75 seconds to 25 seconds and directs 60% of transaction fees into a reserve paid out over time. Elsewhere, the dollar firmed slightly and Treasuries gave back part of Tuesday’s gains. Brent rose above $110 as U.S. industry data pointed to another drop in oil stockpiles.
Why It Matters?
Bitcoin is trading as part of the AI risk complex rather than apart from it, rising with tech futures and Asian chip-heavy markets on the same earnings news. That makes the AI earnings season a direct input for crypto, and it cuts both ways, as NextDC’s collapse showed on the same day. The more constructive signal is in positioning: with short-term holders, the group most likely to sell on a dip, at their smallest share of supply since early 2023, there is less fragile supply to flush out. The Hashdex comparison also suggests the current bear phase is already close to the length of previous cycles. Still, a 1.3% gain in a strong risk session is modest, and oil above $110 keeps inflation, and therefore the Fed, at the center of the outlook.
What’s Next?
The Federal Reserve meets on Oct. 27 and 28, and CoinDesk suggests bitcoin would need to reclaim $84,000 before then to show it is ready for that test. Zcash’s NU7 activation is the next catalyst for ZEC, with the upgrade already running on the test network since early October. Watch whether Tesla’s results and the rest of AI earnings season sustain the tech rebound. Oil and Treasury yields remain the key macro risks, given the pressure that energy prices put on rate expectations.
Affected Tickers and Coins: BTC, ZEC, ETH, XRP, HYPE, DOGE, BNB, SOL, TRX, SPCX, SMCI, NXT, BZ
Source: CoinDesk
