Bitcoin Holds Above $80,000 as Taiwan Chip Stocks Slide

Bitcoin held above $80,000 into Thursday morning in Asia, while Taiwan's stock market fell as chip shares dropped again.

Bitcoin traded at $80,744 at 02:14 UTC on Thursday, November 5, up 5.09 percent over 24 hours from $76,834, in the Orbit Post market wire's latest delayed snapshot. The move extended Wednesday's rebound in the United States. Bitcoin had fallen to about $75,600 overnight as midterm results came in, then recovered after Democrats won control of both houses of Congress.

Reuters reported that investors put money into stocks, bonds, non-dollar currencies and gold on Wednesday as the election result became clear. A steep fall in oil prices helped. Reuters put the day's drop in oil at about 8 percent, a move that eases pressure on inflation and on the case for higher interest rates. CoinDesk reported that bitcoin touched $81,000 during the US session before settling just above $80,000, while the Dow Jones Industrial Average rose 3.1 percent. Traders who had bet against bitcoin were forced to buy back their positions as the price rose, and that forced buying added to the climb.

Chips go the other way

Taiwan's Taiex fell 1.67 percent to 42,233.12 in the same wire snapshot, down from a previous close of 42,948.91. In early trading in Taipei on Thursday, the index fell as much as 905.91 points to 42,043 before recovering part of the loss, according to Taiwan market coverage.

The drag came from semiconductors. The Philadelphia Semiconductor Index fell 3.13 percent to 10,268.66 in the United States on Wednesday, November 4, its lowest level in six months. Nvidia fell 3.17 percent and Micron fell 7 percent. The US-listed shares of TSMC fell 2.24 percent, and TSMC fell NT$15 to NT$2,245 in early trade in Taipei. MarketWatch reported that chip stocks slipped as the election results raised worries that data center construction could slow or cost more. That spending drives orders for Taiwan's chip supply chain, so a weak session for US chip names lands fast in Taipei.

What happens next

The two moves rest on the same election, read two ways. For bitcoin, a clear result and cheaper oil support risk taking, as long as the price holds above $80,000. For Taiwan, the question is whether US chip stocks stabilize after hitting a six-month low. The US jobs report due on Friday is the next test for interest rate expectations, and rate expectations drive both trades.