The cryptocurrency market rallied sharply on Thursday, with Bitcoin (BTC) surpassing the $100,000 milestone for the first time since February. Following Bitcoins path Ethereum ( ETH ) also crossed the $2000 mark. With the top two tokens showing great strength XRP is also climbing up with a 5% hike.
The overall market cap is already 5% up and trading volume has increased by 57.7% in the last 24 hours. Speaking of other tokens: Brett, Pudgy and Virtual have taken the lead for table top positions with 37%, 35% and 34% jumps respectively.
Source: CoinMarketCap
Notable memecoins like Pepe and Fartcoin have also hiked 24% and 23%. Followed by Dogewifhat ( WIF) aiming for $1 with 20% gains for today.
3 Reasons Why Crypto Is Up?
Let’s have a look at why the market has suddenly turned optimistic after weeks of waiting.
1. Bitcoin Leads the Charge
Bitcoin (BTC) price climbed above $100,000 in today’s trading session, sparking enthusiasm across altcoins and pushing total crypto market capitalization north of $3 trillion. BTC’s lead helped Ethereum (ETH) and other leading tokens to poste gains above 5% as bullish momentum spread.
2. Federal Reserve Holds Rates
A key driver of the rally was the Federal Reserve’s decision on Wednesday to maintain interest rates at 4.25%–4.5%. Jerome Powel acknowledged yesterday that high tariffs increase the stagflation risks due to sluggish growth paired with persistent inflation.This has spurred investors to seek alternative options like cryptocurrencies to hedge their positions.
3. US-UK Trade Deal Lifts Market Sentiment
Adding to the optimism, the United States and United Kingdom announced a major trade agreement. The deal includes tariff reductions, enhanced market access, and adjustments to the UK’s digital services tax. This has injected positive sentiments on not just crypto but all the markets.
