Bitcoin surged to a 19-day high, briefly reaching over $116,000, driven by cooler U.S. inflation data which has heightened expectations for a Federal Reserve interest rate cut. This bullish sentiment in the crypto market is also supported by significant inflows into Bitcoin ETFs and diminished selling pressure, following a two-week price consolidation. The U.S. Producer Price Index (PPI) dropped unexpectedly by 0.1% in August, suggesting easing inflationary pressures, which could prompt the Fed to lower interest rates at its meeting on September 17. As a result, analysts predict a strong potential for further price increases in Bitcoin and increased ETF activity, with notable inflows recorded at $1.39 billion in September alone. Despite Bitcoin's current optimism, major altcoins like Ethereum and XRP are lagging in performance, although some cryptocurrencies such as Dogecoin experienced robust gains. Overall, the market anticipates a surge in Bitcoin's price as macroeconomic conditions evolve favorably for cryptocurrencies.

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