Bitcoin Rises as Dollar Weakens, Tech Recovers — Update

By Joe StonorBitcoin rebounded toward $83,000 as the weaker dollar and recovering risk sentiment helped support crypto assets.The cryptocurrency rose 0.9% to $82,750 after falling as low as $79,770 on Thursday, when a sharp flight from artificial-intelligence stocks prompted a broader pullback from risk assets including crypto. Ether also recovered Friday, rising 1.3% to $2,481.Bitcoin's move in tandem with AI stocks demonstrates crypto's vulnerability to broader financial market uncertainty, "particularly when investors reduce exposure to highly volatile assets," said Naeem Aslam, chief investment officer at Zaye Capital Markets.Flows recovered later Thursday as investors moved to buy the dip. Bitcoin exchange-traded funds ended the session with net inflows of $5.1 million, according to crypto data platform CoinGlass. Flows were concentrated in BlackRock's bitcoin ETF, which drew $205.78 million, offsetting a pullback in other funds.Crypto assets were helped by dimming expectations for a near-term Federal Reserve rate hike. Fed Chairman Kevin Warsh avoided a clearly hawkish or dovish tone during a moderated conversation at the International Monetary Fund meetings in Bangkok.Looking ahead, "bitcoin's immediate outlook depends on whether declining Treasury yields and renewed institutional inflows can offset inflation-driven monetary tightening concerns," Zaye Capital Markets' Aslam said.Write to Joe Stonor at [email protected]