On Wednesday, Bitcoin reached a peak of $109,600, marking its highest value in three weeks. Ethereum experienced a significant surge of nearly 8%, while Dogecoin saw even more substantial gains. This upward movement in the cryptocurrency market appears to be fueled by investor optimism regarding a potential interest rate cut from the Federal Reserve.
Dogecoin led the charge among larger meme coins, surging over 8% in just 24 hours, according to data from CoinGecko, reaching a price of $0.171. This surge allowed the eighth-largest cryptocurrency by market capitalization to recover some of the losses it had experienced over the last month. In parallel, Ethereum (ETH) was trading above $2,590, reflecting an almost 8% increase within the same timeframe.
Bitcoin was transacting at over $109,200, showing a gain of more than 3% since the previous day. Earlier in the day, it surpassed the $109,000 mark for the first time in three weeks before peaking above $109,600. Presently, Bitcoin is just slightly over 2% away from its all-time high of $111,814, which was established in May.
“Bitcoin is taking a backseat today, with altcoins driving the market upwards,” commented Zach Pandl, head of research at Grayscale, in correspondence with Decrypt. He noted that the recent approvals for crypto exchange-traded products (ETPs) might be bolstering investor confidence, paving the way for traditional finance capital to flow into altcoins. Pandl also highlighted that improved regulatory clarity in the U.S. is likely attracting more users and investment into the cryptocurrency sector. He expressed optimism that, while asset valuations are currently stable, many tokens could see new highs in the latter half of this year.
This market rally coincided with U.S. President Donald Trump’s announcement of a new trade agreement with Vietnam that would facilitate access for American manufacturers. Furthermore, Ripple, a prominent crypto payments firm, announced that it has submitted an application to the Office of the Comptroller of the Currency (OCC) to secure a national bank charter.
Investor sentiment has also brightened in anticipation of a possible interest rate cut from the Federal Reserve, following some dovish comments from central bank officials in recent days. The tech-oriented Nasdaq and S&P 500 indexes both closed slightly higher on Wednesday, each gaining less than a percentage point, after reaching record highs earlier in the week.
However, macroeconomic uncertainties continue to loom large. Trump’s proposed budget has faced substantial opposition in the House of Representatives, causing delays in its approval. Additionally, trade negotiations with China and other nations remain complicated, and ongoing conflicts in Ukraine and the Middle East are unresolved.
On Tuesday, net inflows into spot Bitcoin exchange-traded funds turned negative, breaking a 15-day streak of strong gains, indicating that investors still harbor some concerns. Joe DiPasquale, CEO of crypto fund manager BitBull Capital, conveyed in a message to Decrypt that broader risk assets have shown signs of improvement as hopes for a rate cut regain focus. “This isn’t a major fundamental shift, but rather positioning and sentiment gaining momentum following weeks of consolidation,” he stated. However, he also remarked, “Crypto often thrives in an environment of uncertainty and liquidity bets. Traders appear to be looking beyond geopolitical and fiscal risks, instead concentrating on the potential for looser monetary policy and the resilience Bitcoin has demonstrated above critical support levels. While macroeconomic risks persist, the market is currently favoring potential upside over downside—at least for the time being.”
