Bitcoin Surges Past $100K Again: What This Means for Altcoins and the Market

Bitcoin has bounced back above the $100,000 mark on Wednesday, trading at $100,500 per coin, following the release of U.S. inflation data that met expectations. This rally has also positively impacted several major altcoins.

Bitcoin's Recent Performance

After dipping below $95,000 on Tuesday, Bitcoin has seen a 5% increase over the last 24 hours and a similar rise over the past week. The cryptocurrency recently reached an all-time high of $103,679.

U.S. Inflation Data and Market Reactions

The Bureau of Labor Statistics reported that the core consumer price index (CPI), which excludes food and energy, rose by 0.3% last month. This aligns with analysts' forecasts and suggests that inflation is under control, prompting speculation that the Federal Reserve may cut interest rates next month. Lower interest rates typically boost the cryptocurrency market as investors seek higher-risk assets.

Altcoin Gains

In the altcoin arena, XRP has surged by 17% to $2.44, recovering from a previous drop below $2.00. The price increase coincides with Ripple Labs announcing the upcoming launch of its RLUSD stablecoin after receiving regulatory approval.

Dogecoin, favored by Elon Musk, has increased by nearly 9%, trading above $0.415, while Shiba Inu has jumped nearly 13% to $0.000029. Additionally, Solana and Cardano have also seen significant gains, with Solana up more than 9% at $229 and Cardano rising 13% to $1.09.

Institutional Investment

A record $3.85 billion flowed into digital asset funds last week, driven by institutional interest, particularly in Bitcoin and Ethereum exchange-traded funds (ETFs). This inflow reflects traditional investors' growing appetite for cryptocurrency exposure as Bitcoin crosses the $100K threshold again.

Edited by Andrew Hayward