Crypto Market Soars with Bitcoin Crossing $101K, Driven by XRP and AI Tokens After CPI

The crypto market is showing signs of recovery on Wednesday, rebounding from a series of sell-offs earlier in the week that likely wiped out much of the long leverage. This recovery is happening alongside a notable rally in the U.S. stock market, sparked by today’s Consumer Price Index (CPI) report, which matched expectations. The data has led traders to believe that the Federal Reserve will likely lower its benchmark interest rate by 25 basis points at next week’s meeting. The Nasdaq has gained 1.5%, while the S&P 500 is up almost 1%.

Bitcoin (BTC), which had dropped to as low as $94,100 earlier in the week, has recovered to $101,000, showing a more than 6% increase in the past 24 hours. The broader CoinDesk 20 Index has surged by nearly 11%, with XRP posting a 15% gain.

AI-focused tokens are also performing well, with news from The Information indicating that Apple (AAPL) is collaborating with Broadcom (AVGO) on an AI chip. NEAR Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) have all risen by 15% or more in the last 24 hours.