Bitcoin Surges Past 80,000 USD as U.S. Tech Stocks Rally; All Eyes on FOMC Meeting

Bitcoin is gaining momentum, riding the wave of strong tech stock performance in the U.S. market. However, investors remain cautious as the Federal Open Market Committee (FOMC) prepares to make its interest rate decision.

As of 10:50 a.m. (KST) on Wednesday, Bitcoin was trading at 10,829,000 KRW (approximately 8,107 USD) on the South Korean cryptocurrency exchange Bithumb, up 1.08% from the same time yesterday.

Simultaneously, global cryptocurrency tracker CoinMarketCap reported Bitcoin at 80,801 USD, marking a 0.86% increase from the previous day.

Market analysts attribute Bitcoin's rebound to improved investor sentiment following the upswing in U.S. tech stocks. On Tuesday, the tech-heavy Nasdaq index continued its upward trajectory. News of Anthropic's potential initial public offering (IPO) and Broadcom's substantial fundraising efforts have stoked enthusiasm for the artificial intelligence (AI) sector, fueling appetite for riskier assets.

Investors are also closely monitoring the U.S. Federal Reserve's monetary policy decisions. The Fed is conducting its regular FOMC meeting on Tuesday and Wednesday, with the interest rate announcement expected at 3:00 a.m. (KST) on October 29. The current U.S. interest rate range stands at 3.75% to 4.00%, with many expecting rates to hold steady.

The Fed's forward guidance on monetary policy, to be unveiled after the rate decision, is another crucial factor. Experts suggest that Fed Chair Kevin Warsh's stance on potential further tightening and inflation trends during the press conference could significantly impact the short-term trajectory of Bitcoin and other risk assets.

Market participants are also eyeing the preliminary U.S. gross domestic product (GDP) figures for the third quarter and the September Personal Consumption Expenditures (PCE) price index, both set for release on October 29. Should growth rates and inflationary pressures exceed market expectations, it could dampen hopes for monetary easing by the Fed, potentially pressuring the cryptocurrency market.

U.S. Treasury Secretary: Cryptocurrencies Will Bolster Dollar's Global Dominance

U.S. Treasury Secretary Scott Bessent has predicted that cryptocurrencies will play a pivotal role in reinforcing the dollar's global supremacy.

Foreign media reported on Tuesday that Secretary Bessent emphasized how cryptocurrencies will support America's technological edge and the dollar's dominance. He explained that while military might once underpinned reserve currency status, technological prowess will be the key determinant going forward. Bessent asserted that the U.S. will lead the digital asset technology race, further cementing the dollar's position.

Bessent particularly highlighted how dollar-based stablecoins could improve dollar access in emerging markets while boosting demand for U.S. Treasury bonds. He noted that over 90% of all stablecoins are dollar-denominated, with issuers holding U.S. Treasury bonds as reserves. Bessent projected that stablecoins could become a significant funding source for the U.S. Treasury in the future.

Ripple Secures Final OCC Approval for Trust Bank, Set to Manage RLUSD Reserves

Ripple has reportedly obtained final approval from the Office of the Comptroller of the Currency (OCC) to establish a federally chartered trust bank.

On Tuesday, international media outlets reported that Ripple received final authorization to establish the Ripple National Trust Bank, following conditional approval granted last December. The bank will oversee the reserves of Ripple's dollar-based stablecoin RLUSD and provide digital asset custody services.

However, the issuance of RLUSD will continue to be handled by Standard Custody and Trust Company, which operates under New York state regulations. The newly established bank will introduce an additional layer of federal oversight to RLUSD operations.

Quantum Computing Security Concerns Hinder Institutional Bitcoin Investment

Worries about potential security threats from quantum computers are reportedly hampering the growth of institutional investments in Bitcoin.

According to international media reports on Tuesday, Muneeb Ali, co-founder of Stacks, pointed out that uncertainties surrounding quantum computing are weighing on Bitcoin's growth prospects. He suggested that without concrete plans from Bitcoin developers to transition to quantum-resistant security protocols, institutional investors might hesitate to commit to large-scale investments.

Ali cautioned that if significant progress in adopting quantum-resistant technology isn't made by 2028, security risks could escalate. He noted that enhancing the Bitcoin network's security framework could take years, with existing holders needing additional time to migrate their assets to new, more secure addresses.

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Bitcoin Surges to 80,000 USD: What Does the FOMC Decision Mean for Investors?