Bitcoin and Altcoin Surge Together: The Cryptocurrency Market Explodes Ahead of Fed Rate Cut Expectations

Bitcoin has rebounded strongly, surpassing the $100,000 mark and trading at $101,000 on the morning of December 12, 2024, after a 3% increase due to the Consumer Price Index (CPI) data for November meeting the expected 2.7%. This has reinforced confidence that the Federal Reserve (Fed) will cut interest rates by an additional 25 basis points next week, bringing the benchmark rate down to 4.33%.

Price Volatility and Bitcoin Market

• Bitcoin reached a record high of $103,918 on December 5 before adjusting by 10%, dropping to a low of $90,200 during the pullback but quickly recovering.

• CryptoQuant's CEO, Ki Young Ju, noted that demand from ETF funds and strong accumulation by institutions are limiting the extent of adjustments in this bullish cycle.

Growth Across the Cryptocurrency Market

Bitcoin's recovery has sparked a strong price surge across the entire cryptocurrency market:

• Ethereum (ETH): Up 7.5%, surpassing $3,800

• XRP: Up 20% to $2.42.

• Other altcoins also recorded double-digit gains:

• Solana (SOL): +11%.

• Cardano (ADA): +16%.

• Tron (TRX): +10.6%.

• Avalanche (AVAX): +13%.

Sector Performance and Notable Tokens

• Sui (SUI): Up 20%, returning to the top 20 largest cryptocurrencies at a price of $4.3.

• Tokens related to centralized exchanges: Leading in performance with an average increase of 17%.

• Bridging tokens such as LayerZero (ZRO) and Wormhole (W): Average increase of 10%.

No sector among the 22 sectors tracked by Artemis recorded negative performance in the past 24 hours, with an average increase across the market of 7.8%.