On Wednesday, the cryptocurrency sector showed signs of revitalization after overcoming earlier sell-offs that had wiped out a large portion of long positions. This bounce back occurred alongside a notable uptick in U.S. stock markets, triggered by the morning’s Consumer Price Index (CPI) data, which aligned closely with economists’ forecasts. This outcome has led investors to anticipate a 25 basis point cut in the federal funds rate at the Federal Reserve’s policy meeting next week. The Nasdaq Composite soared by 1.5%, while the S&P 500 hovered just under a 1% gain.
Bitcoin’s Recovery
Bitcoin (BTC) had fallen to around $94,100 earlier this week but has since surged back to $101,000, marking an impressive increase of more than 6% within the last 24 hours. In a similar vein, the CoinDesk 20 Index has experienced a robust 11% jump, with XRP spearheading the recovery with a 15% rise.
AI Tokens Surge
In addition to Bitcoin’s momentum, AI-related cryptocurrencies are showcasing significant gains. This trend may be inspired by a report from The Information about Apple’s collaboration with Broadcom to create an AI chip. Notably, tokens such as NEAR Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) each saw increases exceeding 15% over the past day.
Source: Coindesk
