Bitcoin reached $100,000 per coin again on Wednesday, with several major altcoins following its lead. This occurred following the release of data on Wednesday that showed inflation in the U.S. was increasing at an anticipated pace. Bitcoin’s largest market cap is now $100,500 per coin, showing a 5% increase in the previous 24 hours, and almost as much in the last seven days.
After falling below the $95,000 mark on Tuesday and leading to numerous liquidations of long and short positions, Bitcoin has since experienced a steady recovery. In the previous week, it achieved its first $100,000 price milestone with a current all-time high mark of $103,679. The Bureau of Labor Statistics’ figures show that the core consumer price index, which excludes food and energy prices, rose 0.3% in November, which was in line with what experts anticipated.
Analysts now believe the Federal Reserve will reduce interest rates once more next month due to some control over inflation. When interest rates have been lower, Bitcoin and the broader cryptocurrency market have generally performed well, as investors with higher risk tolerance become more attracted to the asset.
In the altcoin market, XRP, the third-biggest digital coin by market cap, is experiencing the largest gains. Its price has surged by 17% in the last day and is currently trading for $2.44. This change is a reversal from Tuesday, when the coin dropped below the $2.00 mark following a seven-year high price for the Ripple-linked coin, after reaching $2.82 the previous week.
The bounce back comes after Bitcoin’s rebound, as well as Ripple Labs CEO Brad Garlinghouse stating on Tuesday that the company’s RLUSD stablecoin would soon be launched after receiving New York regulatory approval. Dogecoin, the seventh-biggest coin by market cap, and Elon Musk’s favorite digital currency, is up nearly 9%, trading for over $0.415.
Its copycat counterpart, the Ethereum-based Shiba Inu, has risen nearly 13% over the previous day, with its current price at nearly $0.000029. Solana has risen more than 9% on the day with a current price of $229, while Cardano has increased 13% to $1.09. Money has started to flow back into exchange-traded products, such as the new Bitcoin ETFs in the U.S., with a record $3.85 billion entering funds that provide traditional investors exposure to the cryptocurrency market last week, amid Bitcoin’s initial rise above the $100,000 mark.
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