Urooj NazirWhen U.S. inflation data came in line with forecasts, Bitcoin surged back above $100,000 on Wednesday, and other leading coins also surged.
Following data released on Wednesday that indicated U.S. inflation was increasing at an anticipated rate, Bitcoin once again exceeded $100,000 on the market, dragging many other popular altcoins with it.
According to CoinGecko, the largest coin by market capitalization is currently selling for $100,500 each. It has increased by 5% in the last day and by almost the same amount over the last seven days.
Bitcoin has steadily rebounded since Tuesday, when it fell below the $95,000 barrier, leading to several liquidations of long and short positions. Last week, the top cryptocurrency reached the $100,000 price milestone for the first time, reaching a record high of $103,679.
As expected by analysts, the core consumer price index, or CPI, which does not include the cost of food and energy, increased by 0.3% last month, according to data released by the Bureau of Labor Statistics on Wednesday.
Since inflation is mostly under control, experts now predict that the Fed will lower interest rates once again next month. The news also caused U.S. stocks to rise.
Since investors with a larger appetite for risk are drawn to the asset, Bitcoin and the larger cryptocurrency market have generally performed better when interest rates have been lower.
The altcoin market is seeing the strongest increases from XRP, the third-largest digital token by market capitalization. Over the last day, its price has increased by 17%, and it is currently trading at $2.44.
That represents a reversal from Tuesday, when the coin fell below the $2.00 barrier after hitting a seven-year high of $2.82 last week, which is connected to the Ripple. In addition to Bitcoin’s own recovery, Ripple Labs CEO Brad Garlinghouse announced on Tuesday that the company’s RLUSD stablecoin will launch shortly after receiving regulatory permission in New York.
This just arrived. We have received @NYDFS’s final permission for $RLUSD! Exchange and partner listings will go online shortly. As a reminder, @Ripple will notify you first when RLUSD is live.
In other news, Dogecoin, Elon Musk’s preferred digital asset and the seventh-largest coin by market capitalization, is up almost 9%, trading at over $0.415. Additionally, the Ethereum-based Shiba Inu, its imitation competitor, has increased by almost 13% in the last day. Right now, the price is close to $0.000029.
Cardano has risen 13% to $1.09, while Solana has increased more than 9% on the day to $229.
In the U.S., money has returned to exchange-traded products, such as the new Bitcoin ETFs. Last week, with Bitcoin’s initial surge over the $100K threshold, a record $3.85 billion struck vehicles that expose traditional investors to the crypto world.
