Bitcoin rose to a two-month high on Wednesday, reaching about $96,755, after a recent low of $90,383. The surge has driven gains across the cryptocurrency market.
Other major cryptocurrencies also saw increases, including Ethereum (4.6%), XRP (1.6%), Solana (2.2%), and Dogecoin (3.1%). Coinbase shares briefly rose 4% before settling at a smaller gain.
The total value of the global crypto market jumped by $161 billion, from $3.17 trillion to $3.3 trillion in just a few days.
Analysts say the rally was fueled by mixed jobs reports and lower-than-expected inflation data, which have increased hopes that the Federal Reserve may cut interest rates soon. Historically, Bitcoin tends to rise when interest rates fall.
Crypto traders are also watching potential pro-crypto legislation, including the Clarity Act, which aims to define which digital assets fall under SEC or CFTC regulation. Positive signals from lawmakers have boosted investor confidence.
Bitcoin previously hit $120,000 last year amid similar pro-crypto policies and corporate investment announcements. Companies like Trump Media and Technology Group invested heavily in Bitcoin, further driving market optimism.
With interest rate expectations and supportive legislation in play, investors are closely monitoring Bitcoin and other digital assets for potential continued gains in the coming months.
Follow on Google News
