Bitcoin gains more than 2% to $84.8k as risk sentiment prevails

Bitcoin experienced a more than 2% increase on Wednesday, bolstering its value above $84.8k. This upward trend continued for a second consecutive day as risk sentiment on Wall Street remained high. The boost was attributed to robust corporate earnings and a surge in the technology sector due to SpaceX's impressive quarterly results.

However, the cryptocurrency's ascent was somewhat restrained by a rise in oil prices. As of 17:38 ET (21:38 GMT), Bitcoin was trading at $84,792.2, marking a 2.2% gain. The rise in Bitcoin's price was relatively modest, with 24-hour spot gains of about 2.6% and a 3% increase in futures open interest. Analyst Iliya Kalchev from Nexo Dispatch noted that the rally was price-led and that positioning in the market remained light, with open interest notably lower than its all-time highs, according to CoinDesk data.

Implied volatility has decreased slightly below 40% since October 15, and Deribit's one-month skew still favors puts at 8%, suggesting a more balanced sentiment among traders. Despite the light U.S. economic calendar this week and the Federal Reserve's upcoming decision, market participants have been closely monitoring U.S. equities and oil as indicators for the cryptocurrency market.

The main U.S. stock indexes closed higher on Wednesday, with SpaceX leading the technology sector after reporting strong earnings and announcing a special committee to explore a potential merger with Tesla. This development reignited interest in the artificial intelligence sector, which had experienced a downturn in recent weeks.

The AI trade received a further lift from solid guidance provided by Super Micro Computer, another tech company. Additionally, the potential merger between SpaceX and Tesla, which would involve over 30,000 BTC (approximately $2.5 billion) in their combined balance sheets, added to the bullish sentiment in the crypto market. Other cryptocurrencies, such as Ether, XRP, BNB, Solana, and Cardano, also saw gains on Wednesday, with various memecoins like Dogecoin and $TRUMP also experiencing minor price increases.