Bitcoin Hits New All-Time High Amid Market Turmoil: What's Fueling This Surge?

Investor sentiment was notably subdued on Wednesday, primarily due to escalating geopolitical tensions that impacted risk assets ahead of Nvidia Corp.'s highly anticipated third-quarter earnings report. The mood in the market worsened after confirmation that Ukraine deployed U.K.-made Storm Shadow missiles into Russian territory, following their use of U.S.-supplied ATACMS missiles.

The CBOE Volatility Index (VIX) surged over 9%, indicating increased investor anxiety. Major U.S. indices were in decline, with the Nasdaq 100 leading the losses as technology stocks faced significant sell-offs.

In contrast, the U.S. dollar resumed its upward trend, with the Invesco DB USD Index Bullish Fund ETF climbing by 0.7%. This safe-haven demand also boosted gold prices, which advanced by 0.7%. Meanwhile, natural gas emerged as a standout performer among commodities, soaring over 6% for the day.

Amidst this risk-off sentiment, Bitcoin (BTC/USD) defied the odds, climbing over 2% to reach an intraday all-time high of $94,989, marking a remarkable 123% gain year-to-date.

Wednesday’s Performance In Major Indices, ETFs

| Major Indices | Price | 1-day % chg | |------------------------------------|------------|---------------| | Dow Jones | 43,198.51 | -0.2% | | S&P 500 | 5,886.96 | -0.5% | | Russell 2000 | 2,311.30 | -0.6% | | Nasdaq 100 | 20,544.18 | -0.7% | | CBOE VIX | 17.94 | 9.7% |

Wednesday’s Stock Movers

• Target Corp. (TGT) fell 22% following a disappointing earnings report.
• Other notable stock reactions include Keysight Technologies Inc. (KEYS) up 5.7%, XP Inc. (XP) down 6%, and Williams-Sonoma Inc. (WSM) up 30%.
• Apart from Nvidia, large-cap tech companies like Palo Alto Networks Inc. (PANW) and Snowflake Inc. (SNOW) are also set to release earnings results after the market close.

Photo: Shutterstock

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