The cryptocurrency market is bouncing back after a tumultuous start to the week, with Bitcoin leading the way in the recovery. Following a significant drop to $94,100 earlier in the week, Bitcoin has surged to $101,000, marking a more than 6% increase over the past 24 hours. The broader CoinDesk 20 Index has also seen a substantial uptick, rising nearly 11% during the same period, with XRP posting a 15% gain.
The resurgence in the crypto market coincides with a strong rally in the U.S. stock market, fueled by the Consumer Price Index report that met economist expectations. Traders are now anticipating a 25 basis point rate cut by the Federal Reserve at its upcoming meeting, boosting investor sentiment. The Nasdaq is up 1.5%, while the S&P 500 is close to a 1% gain.
In addition to the crypto giants like Bitcoin and XRP, AI-related tokens are also performing well today. Reports of Apple collaborating with Broadcom on an AI chip have sparked a positive sentiment in the market, leading to significant gains for tokens like NEAR Protocol (NEAR), Internet Computer (ICP), and Render (RENDER), all of which have surged by 15% or more in the past 24 hours.
Overall, the market appears to be recovering from the recent sell-off, with investors regaining confidence in both traditional and digital assets. The positive momentum in both the crypto and stock markets bodes well for the overall market sentiment, suggesting that the recent volatility may have been a temporary blip rather than a sustained trend.