Risk-On Sentiment Ignites Cryptocurrency Surge

Cryptocurrency prices surged on Thursday after a dovish shift in the Federal Reserve's rate outlook lifted risk appetite.

The Dow Jones Industrial Average rallied 624.16 points, or 1.18%, to end at 53,686.11, while the S&P 500 spiked 1.06% to close at 7,747.71, and the Nasdaq Composite gained 1.4% to settle at 26,584.06.

BTC climbed above $82,000, buoyed by a 56% surge in trading volume. Ethereum's price spiked to an intraday high of $2,526, while XRP and Dogecoin were up 6% each.

CryptoQuant noted that Bitcoin shows strong bullish signals with a Bull Score of 70, yet new buyer demand remains weak, while short covering in futures markets is driving most of the recent rally.