Bitcoin (COIN:BTCUSD) climbed on Thursday, building on overnight gains as softer-than-expected U.S. producer price data fueled optimism that the Federal Reserve could implement interest rate cuts soon. Traders’ attention is now turning to the upcoming consumer price index (CPI) report for further clues on inflation trends.
The cryptocurrency, the largest by market value, led gains across major digital assets as investor appetite for risk increased amid expectations that the Fed could reduce rates as early as next week. However, caution lingered ahead of the CPI figures for August, which are expected to reflect the effects of President Donald Trump’s trade tariffs on overall price levels.
By 01:19 ET, Bitcoin had risen 2.3% to $114,076.8, although it remains well below the record highs reached in mid-August.
Rate Cut Optimism Drives Bitcoin Momentum
Bitcoin’s recent gains were largely sparked by softer U.S. producer price index readings for August, which alleviated concerns that trade tariffs would sharply accelerate inflation. Markets are now pricing in a 93.7% likelihood of a 25-basis-point Fed rate cut at the September 16–17 meeting, with a smaller 6.3% probability of a 50-basis-point reduction, according to CME FedWatch data.
Lower interest rates are seen as favorable for cryptocurrencies, as they increase market liquidity for speculative assets. Bitcoin benefited from steady rate cuts throughout 2024, which contributed to its rapid rally last year. Investors are now looking to CPI data to gauge whether inflation pressures are easing, a factor that could further support risk appetite and crypto prices.
Crypto IPOs in the Spotlight
The broader cryptocurrency market is also tracking a wave of major U.S. IPOs in the sector. Figure Technology, a stablecoin operator, raised at least $787 million on Wednesday, selling 31.5 million shares at $25 each—above its previously guided range—and increased the size of the offering.
This followed news from Gemini, the Winklevoss twins-backed exchange, which raised its proposed IPO price range and aims for a valuation of up to $3.08 billion. Other industry names, including Circle Internet Group Inc (NYSE:CRCL), Bullish Inc (NYSE:BLSH), and eToro Group Ltd (NASDAQ:ETOR), have made successful public debuts this year, with regulatory clarity from the Trump administration spurring investor interest.
Altcoins Follow Bitcoin Higher
Other major cryptocurrencies also saw gains alongside Bitcoin on Thursday. Ether, the second-largest crypto, rose 2.6% to $4,419.42, while XRP gained 1.5% to $3.0034. Solana increased 1.8% and Cardano added 1.6%. Among meme coins, Dogecoin jumped 4.4%, while $TRUMP saw a modest 0.2% rise.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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