The reasons for this spectacular rebound

The crypto market is going through a phase of exceptional growth, driven by the spectacular rise of bitcoin which now exceeds the historic mark of $100,000. Indeed, long considered a difficult milestone to cross, this threshold was reached thanks to a set of favorable economic factors. Recent inflation data in the United States, which shows a moderate increase in line with expectations, has reassured investors and revived their interest in risky assets. At the same time, the institutional enthusiasm for cryptos, symbolized by record inflows into Bitcoin and Ethereum ETFs, has reinforced this dynamic. Thus, this recovery also spread to altcoins, where assets like XRP, Dogecoin and Solana showed remarkable performances, which confirmed the general excitement of the sector and triggered an optimistic outlook for the months to come.

A recovery powered by Bitcoin and the global economic context

This Wednesday, bitcoin crossed the $100,500 mark, an increase of 5% in just 24 hours, according to data from CoinGecko. Such a revival comes after a brief fall below $95,000 the day before, which led to significant liquidations in the futures market. This rise was helped by the publication of new inflation data in the United States. The Core Consumer Price Index (CPI) recorded a contained increase of 0.3%, in line with observers' expectations. The development reinforced the idea that the Federal Reserve could consider cutting interest rates at its next meeting, a prospect that traditionally supports riskier assets like bitcoin.

At the same time, this announcement also boosted the stock markets, with an increase in the attractiveness of cryptos among investors. Institutional interest in these assets has resulted in record numbers. According to CoinShares, funds dedicated to cryptos, notably Bitcoin ETFs, attracted $3.85 billion in one week, an unprecedented amount. These movements demonstrate a growing appetite for cryptos, particularly in a context where economic signals appear encouraging.

XRP, Dogecoin and Solana: booming altcoins

In the wake of bitcoin's rise, XRP recorded a significant increase of 17% in a single day, reaching $2.44. This spectacular rebound is largely explained by Ripple Labs' announcement relating to the imminent launch of its stablecoin RLUSD. After obtaining the long-awaited regulatory approval from the State of New York, Ripple confirmed the news through a statement from its CEO, Brad Garlinghouse, on the social network have obtained final approval for the RLUSD. Listings will begin very soon.” This announcement reignited optimism around Ripple and increased interest in XRP, which remains a key player among altcoins.

At the same time, other major cryptos have benefited from this general momentum in the market. Dogecoin, often driven by the influence of Elon Musk, saw its price increase by almost 9%, with a price of $0.415. Solana, which is gradually emerging from its previous declines, also saw a notable rise of over 9%, or $229. These performances highlight the growing interconnection between bitcoin and altcoins, but also the rise of positive sentiment among investors. Furthermore, this renewed confidence in the crypto market could signal the start of a new phase of growth for the entire sector.

Bitcoin surpassing $100,000 is a historic milestone, underscoring the growing maturity of the crypto ecosystem. This economic situation, characterized by controlled inflation and potentially falling interest rates, provides favorable ground for a continuation of the upward dynamic. However, continued market volatility and regulatory uncertainties require increased vigilance. This milestone inspires optimism, but reminds us of the importance of enlightened management in a sector where opportunities and risks remain inseparable.

Luc Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.