Bitcoin, the largest cryptocurrency by market value, surged past $100,000 on Wednesday after the release of U.S. inflation data that aligned with market expectations.
Reports indicate that Bitcoin is now trading at $100,500, reflecting a 5% increase over the past 24 hours and a similar rise over the last week.
Earlier on Tuesday, Bitcoin had dropped below $95,000, triggering profit-taking by investors. However, it has since recovered, approaching its all-time high of $103,679. This recovery follows the announcement that the U.S. Consumer Price Index (CPI) rose 0.3% last month, a figure in line with analyst expectations. Experts now speculate that the Federal Reserve might cut interest rates further as inflation shows signs of control.
Lower interest rates typically boost Bitcoin and other cryptocurrencies as investors show greater appetite for high-risk assets.
Altcoins also experienced significant gains:
- Ripple (XRP): Up 17% in the last 24 hours to $2.44. Ripple’s rise follows CEO Brad Garlinghouse’s announcement about launching the RLUSD stablecoin after regulatory approval.
- Dogecoin: Gained 9%, trading above $0.415.
- Shiba Inu: Increased 13% to $0.000029.
- Solana: Up 9%, reaching $229.
- Cardano: Rose 13% to $1.09.
Additionally, cryptocurrency exchange-traded funds (ETFs) have attracted significant inflows, with $3.85 billion pouring into these products last week. These ETFs provide traditional investors easier access to the crypto market.
Bitcoin and the broader cryptocurrency market continue to gain momentum amid favorable economic conditions. If interest rates are reduced further, analysts predict this upward trend is likely to persist.
