TechFlow reported on October 25, citing Cointelegraph, that Bitcoin's price rose 4% from October 23 to 24, reclaiming the $68,000 level. Analysts noted that while inflows into spot Bitcoin ETFs were also significant, the primary drivers behind Bitcoin’s price increase were the strength in tech stocks and improvements in the labor market. The 50-day correlation between Bitcoin and tech stocks remained above 80% in October. Although this correlation fluctuates between positive and negative ranges, Bitcoin and tech stocks often move in tandem during key periods such as times of high market liquidity or concerns about economic recession.
U.S. Labor Department data showed that for the week ending October 19, new jobless claims dropped by 15,000, while continuing claims for unemployment benefits increased by 28,000. This indicates a stabilizing labor market, potentially paving the way for further interest rate cuts by the Federal Reserve.
In the tech sector, SK Hynix, a memory chip supplier for NVIDIA, posted record quarterly profits driven by strong demand from the generative AI field. Tesla’s stock surged 17%, with its Q3 earnings coming in at $0.72 per share, surpassing analysts’ expectations of $0.60. Tesla CEO Elon Musk also projected that the company’s revenue could grow by 30% in 2025. Additionally, Tesla’s energy generation and storage division achieved a record gross margin of 30.5%. Furthermore, Tesla disclosed that it did not sell any of its Bitcoin holdings during the third quarter, a development that bolstered market confidence to some extent.
