Crypto Strengthens, Bitcoin Hits Key Level Amid Fed Rate Cut Expectations
The cryptocurrency market moved positively on Tuesday, as growing expectations of a Federal Reserve interest rate cut boosted investor risk appetite. Bitcoin (BTC) briefly traded above $112,000, up nearly 2% in the past 24 hours, while Ethereum (ETH) strengthened to around $4,345. The Fed's dovish sentiment was a key driver, as lower interest rates generally strengthen the appeal of riskier assets, including crypto.
Major altcoins also rallied. Solana (SOL) surged more than 4% to above $150, supported by increased activity in the DeFi and NFT ecosystems. Meanwhile, Ripple (XRP) held steady around $0.63, supported by speculation about regulatory clarity following a lengthy legal case. Binance Coin (BNB) also edged up 1.5%, capitalizing on the broader market's positive trend. Overall, the global crypto market capitalization remained above $2.4 trillion, indicating continued solid investor inflows.
Despite this, market participants remain cautious ahead of the release of US producer price inflation (PPI) and consumer price inflation (CPI) data this week. This data has the potential to be a major catalyst for crypto price movements, as it could influence the direction of future Fed policy. If inflation data weakens again, crypto could continue its rally to higher levels. However, if the data is stronger than expected, the market risks a short-term correction. Long-term investors still view crypto as one of the most promising alternative assets amid global uncertainty.
Source: Newsmaker.id
