Digital currency Bitcoin surges to around $116,000, buoyed by broader market conditions boosting trader optimism.
In a surprising turn of events, the August 2025 U.S. Producer Price Index (PPI) unexpectedly fell by 0.1%. This marks the first decline since April, with lower prices for unprocessed goods and easing service costs driving the decline.
Meanwhile, in the world of cryptocurrency, Bitcoin has been on a bullish run. The digital currency reached a 19-day high on Thursday, climbing to just above $116,300 earlier in the trading session. According to CoinGecko, Bitcoin is currently trading at $115,680, up 1.5% in the past 24 hours.
This surge in Bitcoin's price is attributed to cooler U.S. inflation data and significant inflows into Bitcoin and Ethereum ETFs by institutional investors. Over the past days, Bitcoin ETFs have seen inflows of $2.32 billion one week and $887 million the following week, while Ethereum ETFs have also experienced substantial inflows, signaling renewed institutional interest boosted by recent SEC rule changes easing crypto ETF listings in the U.S.
Michael Novogratz, founder and CEO of Galaxy Digital, predicts a big surge in Bitcoin prices toward the end of the year. Julio Moreno, head of research at CryptoQuant, shares a similar sentiment, stating that the price action of Bitcoin this week has been driven by growing expectations of a U.S. Fed interest rate cut. Moreno is also bullish on Bitcoin's future, as on-chain data shows that selling pressure from profit-taking has been exhausted.
The Federal Reserve is expected to make a rate cut on September 17, with the odds of a 25 basis point rate cut next week standing at 92.7%, according to CME's FedWatch tool. A half-point rate cut is hovering around 7.3%.
While Bitcoin has been dominating the headlines, other key altcoins like Ethereum, XRP, and Solana are hovering around single-digit gains. However, some lesser-known cryptocurrencies have seen significant gains. Dogecoin is up 25% and Hyperliquid is up 23% in the past 24 hours.
As the cryptocurrency market continues to evolve, investors and analysts will be keeping a close eye on the Fed's decision and the impact it may have on Bitcoin and other digital currencies.
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