Crypto Markets Rally as Inflation Data Spurs Rate Cut Bets
Bitcoin surged 4% to reclaim $95,000 while ethereum led altcoin gains with a 7% jump to $3,330 as softer US inflation data reinforced expectations for Federal Reserve rate cuts. The crypto rally contrasted with muted equity futures, where Dow and S&P 500 contracts slipped 0.3% and 0.2% respectively.
Market sentiment turned decisively risk-on after Wednesday's CPI print showed cooling price pressures. Over $688 million in crypto derivatives positions were liquidated within 24 hours, with short sellers absorbing $603 million of the damage. Solana, Cardano, and other major altcoins posted parallel gains up to 9%.
The rally occurs against a backdrop of growing political tension, with reports emerging that the Justice Department served grand jury subpoenas to Federal Reserve officials earlier this week. Traders appear to be pricing in a prolonged easing cycle through 2026.
