On Thursday, the cryptocurrency markets experienced a significant surge as Bitcoin surpassed the $114,000 mark and Ethereum climbed above $4,400. This upward momentum was driven by cooler-than-expected US inflation data, which enhanced optimism for a possible rate cut by the Federal Reserve. Analysts indicate that the rally was supported by strong institutional and stablecoin inflows, allowing Bitcoin to maintain its gains, while altcoins showed mixed results.
The total crypto market cap is just under $4 trillion, with traders closely monitoring Thursday’s Consumer Price Index report and the upcoming decision from the Federal Reserve regarding interest rates. Analysts observed that the latest Producer Price Index indicates a decline in wholesale inflation, which is improving the overall economic environment and could result in greater investments in crypto if this trend continues. As of the latest update, Bitcoin is priced at approximately $114,148, reflecting a 2.39 percent increase, alongside a 24-hour trading volume of $56.31 billion. The prominent cryptocurrency saw fluctuations, moving between $111,396 and $114,435 during that period. Bitcoin’s market capitalisation stood at approximately $2.44 trillion, reinforcing its position as the top digital asset. Shivam Thakral, noted that Bitcoin experienced a rise after the release of softer US producer price data, which enhanced traders’ confidence in the potential for the Fed to implement rate cuts sooner.
Thakral claims that the adoption of a more accommodating monetary policy, seen as a way to increase liquidity in the markets, positions crypto once again as a leading risk asset. In a noteworthy turn of events, Bitcoin spot ETFs saw a remarkable single-day inflow, amounting to around $741 million. Meanwhile, Ethereum ETFs experienced an influx of $171.5 million, reflecting an increase in investor confidence. Riya Sehgal, observed that the recent softer US inflation data, marked by a 0.1 percent decline in August PPI, has strengthened expectations for Fed rate cuts, consequently driving bullish momentum across the crypto markets. Sehgal highlights that, from a technical standpoint, Bitcoin demonstrates support between $112,500 and $113,000, whereas resistance is noted around $115,000 to $115,500.
“The dominance of Bitcoin sitting at approximately 57–58 percent will serve as an important signal. A decline beneath 57 percent might indicate ongoing altcoin rotation, whereas a rise above 58 percent could suggest a return to BTC,” stated Sehgal. Ethereum, on the other hand, showed signs of recovery and held its ground above the $4,400 mark. As of the most recent update, ETH is valued at $4,429, showing an increase of 2.88 percent, with a trading volume of $40.55 billion over the past 24 hours. Ethereum’s market cap hit $534.53 billion, reinforcing its position as the second-largest cryptocurrency in the world. Sehgal notes that Ethereum’s support is set at $4,300, with resistance expected near $4,450. In the altcoin arena, one asset has claimed the title of the day’s top gainer, surging by an impressive 23 percent. Among others, PUMP, Avalanche, Pendle, Lido DAO, Ethereum Name Service, Dogecoin, Sei, Bittensor, Sky, Fartcoin, Stacks, Arbitrum, and Immutable were notable gainers, experiencing increases of up to 10 percent. On the flip side, several projects emerged as the leading laggards of the day, experiencing declines of up to 9 percent.
In other developments, Litecoin whales have gathered over 1,000 LTC in just one day. Additionally, Grayscale’s ETF application alongside MEI Pharma’s $100 million LTC allocation in its treasury has led to a notable increase in its price. In a recent update, the SEC has delayed its decision regarding Franklin Templeton’s XRP and SOL ETFs, setting a new deadline for November 14. In a notable advancement, Chainlink’s Data Streams have officially debuted on Sei, providing real-time data feeds for US equities, GDP, and more than 300 assets to improve institutional-grade markets. Dow futures are climbing as investors anticipate the upcoming release of important inflation data.