The crypto market surged on Thursday, with Bitcoin surpassing $100,000 and Ethereum crossing $2,000. Trading volume jumped 57.7%, driven by positive sentiment after the Federal Reserve held interest rates and a US-UK trade deal was announced. Noteworthy tokens, including XRP and several memecoins, also saw significant gains.
On Thursday, the cryptocurrency market experienced a remarkable surge, with Bitcoin (BTC) breaking through the $100,000 barrier for the first time since February. This bullish momentum didn’t stop there; Ethereum (ETH) also saw a considerable increase, surpassing the $2,000 mark. XRP, not to be left behind, climbed about 5% amidst this bullish wave. Overall, the market cap saw a notable rise of 5%, and trading volume skyrocketed by 57.7% within just 24 hours.
Looking at other tokens, some standouts include Brett, Pudgy, and Virtual, which recorded impressive jumps of 37%, 35%, and 34%, respectively. Additionally, popular memecoins such as Pepe and Fartcoin saw their values climb by 24% and 23%, while Dogewifhat (WIF) aimed for the $1 mark with a gain of 20% on the same day.
So, what’s behind this sudden upswing in the crypto market? Let’s break down three key reasons driving this current optimism. First off, Bitcoin’s significant leap over $100,000 has generated excitement throughout the altcoin ecosystem, pushing the total crypto market capitalisation past the $3 trillion mark. This positive trend led Ethereum and other leading cryptos to garner gains exceeding 5% due to Bitcoin’s leading influence.
Secondly, the Federal Reserve’s decision to hold interest rates steady at 4.25%–4.5% has played a pivotal role. Jerome Powell recently acknowledged the increased risks of stagflation, citing sluggish growth in tandem with enduring inflation. This environment has prompted investors to turn towards cryptocurrencies as a hedge against economic uncertainty.
Finally, the announcement of a significant trade agreement between the United States and the United Kingdom has further bolstered market sentiment. This deal, which promises tariff reductions and improved market access along with adjustments to the UK’s digital services tax, has injected a wave of optimism not only within the crypto realm but across various markets. It’s a busy time in crypto, and many are eager to see where this momentum leads next!
Also Read: Bitcoin Breaks $100K Again, Michael Saylor Bullish on $200K
