Bitcoin has returned to above $100,000, and other major cryptocurrencies such as Ripple, Dogecoin, and Solana have also experienced price increases.
On Wednesday, following the release of U.S. inflation data that matched expectations, Bitcoin once again surpassed the $100,000 mark per coin, and other top cryptocurrencies also saw price gains.
According to reports, the largest cryptocurrency by market cap is now trading at $100,500, having gained 5% in the past 24 hours and almost the same amount over the past seven days.
Bitcoin had fallen below $95,000 on Tuesday, which led to a sharp profit-taking in both buying and selling positions, but since then, it has gradually recovered. Last week, the cryptocurrency first hit the $100,000 mark and has now reached its highest historical price of $103,679.
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI), which excludes food and energy prices, rose by 0.3% last month, in line with analysts’ expectations. Experts now believe the Federal Reserve may reduce interest rates again next month as inflation is somewhat under control. This news also caused U.S. stocks to rise.
READ MORE: Abu Dhabi has recently recognized the cryptocurrency Tether as a “virtual asset”
Bitcoin and the broader cryptocurrency market tend to perform well when interest rates are lower, as investors are drawn to these assets with more risk appetite. In the altcoin market, Ripple, the third-largest cryptocurrency by market cap, saw the biggest gains. The price of Ripple rose by 17% in the past 24 hours and is now at $2.44.
The price surge of Ripple comes after it had fallen below $2 on Tuesday, while last week, it had reached $2.82, its highest price in seven years. This price recovery is occurring amid Bitcoin’s rebound and following comments by Brad Garlinghouse, Ripple’s CEO, on Tuesday regarding the company’s upcoming stablecoin RLUSD launch after receiving regulatory approval.
Other cryptocurrencies, such as Dogecoin, the seventh-largest cryptocurrency by market cap and a favorite digital asset of Elon Musk, saw an increase of nearly 9%, now trading at over $0.415. Its rival, Shiba Inu, based on Ethereum, grew by nearly 13% in the past 24 hours, with its price currently around $0.000029.
At present, Solana has increased by more than 9%, reaching a price of $229. Cardano also saw a 13% increase, now priced at $1.09. Investments are once again flowing into exchange-traded products like new Bitcoin ETFs in the United States, with a record $3.85 billion entering ETFs last week. These ETFs provide traditional investors with access to the world of cryptocurrencies.