Bitcoin (COIN:BTCUSD) extended gains on Thursday, climbing to $114,076.8 as softer U.S. producer price data fueled hopes that the Federal Reserve may soon ease interest rates. Market focus is shifting to the upcoming August consumer price index (CPI) report for additional insight into inflation trends.
The world’s largest cryptocurrency led gains across major digital assets, driven by expectations that lower interest rates could arrive as soon as next week. However, some caution persisted ahead of the CPI release, which may reflect price pressures from President Donald Trump’s trade tariffs. Despite the rally, Bitcoin remains below the record highs set in mid-August.
Fed Rate Cut Speculation Boosts Crypto
Bitcoin’s recent upward movement was largely fueled by softer-than-expected U.S. producer price data for August, easing concerns that trade tariffs would trigger a sharp rise in inflation. According to CME FedWatch, markets are pricing in a 93.7% chance of a 25-basis-point rate cut at the September 16–17 Fed meeting, with a 6.3% chance of a 50-basis-point reduction.
Lower rates are widely seen as supportive for speculative assets like cryptocurrencies, freeing up liquidity for investors. Bitcoin’s performance in 2024 was notably bolstered by a series of Fed rate cuts, which helped drive its rapid price rally. Analysts now await CPI data to assess whether inflation is cooling—a factor that could further strengthen investor appetite for crypto.
Crypto IPOs Capture Market Attention
The sector is also tracking several high-profile U.S. IPOs this week. Figure Technology, a stablecoin platform, raised at least $787 million in its IPO, selling 31.5 million shares at $25 each, exceeding its initial guidance.
Gemini, the Winklevoss twins-backed exchange, recently raised its IPO price range, targeting a valuation of up to $3.08 billion. Other notable crypto IPOs this year include Circle Internet Group (NYSE:CRCL), Bullish Inc (NYSE:BLSH), and eToro Group Ltd (NASDAQ:ETOR), benefiting from regulatory clarity and increased investor interest.
Altcoins Follow Bitcoin’s Lead
Other major cryptocurrencies also moved higher on Thursday. Ether gained 2.6% to $4,419.42, XRP rose 1.5% to $3.0034, Solana increased 1.8%, and Cardano added 1.6%. Among meme coins, Dogecoin surged 4.4%, while $TRUMP rose slightly by 0.2%.
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