Cryptocurrency Market Surges as Rate Fears Ease and Institutional Demand Rises
The cryptocurrency market experienced a significant surge on Thursday, driven by easing rate fears, Treasury liquidity measures, and renewed institutional demand. The total capitalization of cryptocurrencies increased by 5% over 24 hours, with most major tokens posting broad gains.
Bitcoin led the charge, climbing nearly 5% to surpass $81,000 in value. Ethereum price rebounded to above $2,490, while XRP price rose approximately 10%. Other notable gainers included Solana, Cardano, Dogecoin, and Sui, which increased by over 17%, 13%, 10%, and 17% respectively.
The rally was fueled by cooling US labor data and falling rate expectations. Treasury yields decreased, and the dollar weakened as investors reassessed the Fed's policy outlook. The ISM Services Index reading came in higher than expected, further supporting a potential rate cut that would favor risk assets.