The crypto market has entered a recovery phase on Wednesday, bouncing back from a wave of selling earlier in the week that appears to have flushed out much of the excess long leverage. This positive movement coincides with a strong rally in U.S. stocks following today’s Consumer Price Index (CPI) data, which came in line with economists’ expectations. The report has led traders to predict that the Federal Reserve will likely reduce its benchmark interest rate by 25 basis points during next week’s meeting. The Nasdaq has risen 1.5%, and the S&P 500 is up by nearly 1%.
Bitcoin (BTC), which had dipped as low as $94,100 earlier this week, has now surged back to $101,000, marking a 6% gain over the last 24 hours. The broader CoinDesk 20 Index is up almost 11%, with XRP leading the charge with a 15% increase.
AI-related tokens are also performing well, possibly driven by a report from The Information suggesting that Apple (AAPL) is working with Broadcom (AVGO) on a new AI chip. NEAR Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) have all jumped by 15% or more in the past 24 hours.
