Bitcoin Sits Out Tech-Fueled Stock Recovery — Update

By Joseph WilkinsBitcoin remained below $75,000, sitting out a major rebound in U.S. stock markets, as the prospect of further interest-rate hikes weighed on investor sentiment.The bellwether cryptocurrency was 1.1% lower at $74,140, having fallen below the $75,000 threshold last week for the first time since August. The digital-assets sector has been hit with a series of setbacks in recent weeks after a record $6.3 billion hack of crypto exchange Binance, as well as the Democratic election sweep that some investors fear could translate into greater scrutiny of the crypto industry.Monday saw a significant tech-stock-driven recovery in U.S. equity markets after a bruising selloff last week, but bitcoin failed to capture upward momentum. The S&P 500 rose 2.3%, while the Nasdaq Composite added 2.7%. The Dow gained 2.2%, or 1104 points.The likelihood of further interest-rate hikes by the Federal Reserve has also risen in recent days. Traders believe there is a 99% chance that the Fed will raise rates in December, according to CME FedWatch. Investors are looking ahead to U.S. consumer price inflation data due Tuesday, which is likely to set the direction of travel for cryptocurrencies this week.The cryptocurrency industry needs rules that survive elections and must reduce its reliance on one political party, according to Utkarsh Ahuja, founder of crypto hedge fund Moon Pursuit Capital. A potential Democratic investigation into President Trump's crypto interests and an inability to pass the Clarity Act highlight the limits of relying on one political coalition, he said. "For institutional investors, durable regulation can be more valuable than favorable treatment that changes with the next administration," Ahuja added.Ether was 0.3% lower at $2,120.Write to Joseph Wilkins at [email protected]