The cryptocurrency market is experiencing a positive shift, with total market capitalization increasing to $3.95 trillion, reflecting a rise of 1.8% over the past day. Leading the charge, Bitcoin is trading above $113,800 after seeing a gain of 2.22%. Ethereum also experienced upward momentum, crossing the $4,380 mark with a 1.55% increase.
Several altcoins showed impressive growth, with Solana rising by 1.99% and Cardano by 1.47%, both maintaining strong performance over the preceding week. XRP remains stable at $2.98, marking a daily increase of 1.10% and over 5% growth on a weekly basis.
In the realm of meme coins and newer projects, notable advances were observed as well. Dogecoin surged by 2.54% in the last 24 hours and has appreciated over 13% for the week. Hyperliquid saw an even more substantial increase of over 3% in a single day, with its weekly performance nearing 22%. The Altcoin Season Index currently stands at 69 out of 100, indicating that smaller tokens are increasingly surpassing Bitcoin in terms of performance.
The upward movement in the cryptocurrency markets correlates with recent U.S. inflation data, which came in softer than anticipated. The Producer Price Index (PPI) for August revealed a month-over-month decline of 0.1%, contrasting sharply with forecasts that predicted a 0.3% increase. Yearly PPI growth also showed a decrease to 2.6%, down from 3.1% in July and significantly lower than the expected 3.3%. Additionally, the core PPI, which excludes volatile food and energy prices, experienced a similar drop of 0.1%, against expectations of a 0.3% rise.
This encouraging economic data has led experts to increase their bets on the likelihood of a 50 basis point rate cut by the Federal Reserve in the coming week, although most anticipate a more conservative 25-point adjustment. The market is now awaiting the forthcoming Consumer Price Index (CPI) release on Thursday, which could provide further insights and affect market expectations.
Recent economic reports indicating weaker growth and softer inflation figures are pushing the Fed to reconsider its previously hawkish stance. However, despite these positive trends, Bitcoin’s price movement has remained volatile, frequently reacting to dovish signals but struggling to sustain its gains.
