Bitcoin Crosses Above $101K as XRP, AI Tokens Lead Crypto Rally Following CPI

What to know:

  • Bitcoin recovered from declines earlier in the week, retaking the $101,000 level during U.S. morning hours on Wednesday.
  • Ripple‘s XRP continued an upward move begun yesterday after regulatory approval for the RLUSD stablecoin.
  • AI-related tokens were among the larger gainers, perhaps boosted by a report that Apple is working on an AI chip with Broadcom.

As a seasoned crypto investor with a knack for spotting trends and a portfolio that has weathered numerous market cycles, I must admit, the recent recovery of Bitcoin to $101,000 is a breath of fresh air. I remember when it was struggling at $94,100 just a few days ago. The resilience of this digital gold never ceases to amaze me.

On Wednesday, the cryptocurrency market seems to be rebounding after a series of sell-offs earlier in the week, which at this point appear to have mostly eliminated excessive long positions.

The rise in U.S. stock market, fueled by a substantial rally, occurred following this morning’s Consumer Price Index report which corresponded with economists’ predictions. This development persuaded traders that the Federal Reserve will likely reduce its benchmark fed funds rate by 25 basis points during its upcoming meeting next week. As a result, the Nasdaq has risen by 1.5% and the S&P 500 is almost at a 1% increase.

Initially dropping to $94,100 at a certain point this week, bitcoin (BTC) has since rebounded to reach $101,000, representing an increase of over 6% within the last 24 hours. Notably, the CoinDesk 20 Index has risen by almost 11% during the same period, with XRP leading the way with a 15% boost in value.

Additionally, AI-focused assets are also thriving currently, possibly boosted by the news from The Information suggesting that Apple (AAPL) and Broadcom (AVGO) are collaborating on developing an artificial intelligence chip.

Over the last 24 hours, NEAR Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) have experienced significant gains of 15% or higher.

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2024-12-11 20:10