Bitcoin Powers Past $95K Mark: Ethereum Jumps 7% on Fed Rate Cut Hopes as Stock Futures Slide

Bitcoin Powers Past $95K Mark: Ethereum Jumps 7% on Fed Rate Cut Hopes as Stock Futures Slide

In a thrilling turn for crypto fans, surged over 4% to smash through the < $95,000> barrier on Wednesday. At the same time, climbed more than 7%, reaching $3,330. This rally came after fresh US inflation data came in lower than expected. It boosted hopes that the Federal Reserve will keep cutting interest rates this year.

The crypto market showed real strength as over $688 million in derivatives positions got liquidated in just 24 hours. Most of those were short sellers who bet against the rise. Meanwhile, US stock futures pulled back, highlighting a shift where crypto steals the spotlight from traditional markets.

Why Bitcoin Broke $95K So Fast

has been on fire lately. The price jump past $95,000 marks a key milestone. Traders see this as a sign of building momentum. Lower inflation numbers eased fears of tight money policy from the Fed. When inflation cools, it opens the door for rate cuts. Lower rates make risk assets like Bitcoin more appealing.

Look at the charts: Bitcoin broke a tough resistance level around $92,000 earlier this week. Volume spiked as buyers piled in. On-chain data shows more wallets holding long-term, a bullish sign. Whales – big holders – added to their stacks, pushing the price higher.

• Daily gain: +4.2%
• Key support now at $93,000
• Next target: $100,000?

This move fits a bigger pattern. Bitcoin often leads rallies when macro news turns positive. Investors fleeing weak stocks found a safe bet in BTC.

Ethereum’s Epic 7% Surge to $3,330

stole the show with a sharper rise. Up over 7% to $3,330, ETH benefited from the same macro tailwinds. But there’s more: regulatory optimism played a role too. Recent court wins for Ripple boosted sentiment across altcoins.

ETH’s strength ties to its role in DeFi and NFTs. As Bitcoin rises, capital flows into Ethereum for higher yields. Staking rewards stay attractive at around 4-5%. Network activity is up, with daily transactions hitting multi-month highs.

Technicals look solid. ETH cleared $3,200 resistance easily. RSI shows room to run without overheating. If Bitcoin keeps climbing, Ethereum could test $3,500 soon.

Massive $688M Liquidations Crush the Bears

The liquidation storm was brutal for shorts. Over $688 million in positions wiped out, with shorts taking 80% of the hit. This cascade effect fueled the rally. When shorts get forced to buy back, it creates a squeeze higher.

Platforms like Binance and Bybit saw the most action. Open interest in futures rose, showing traders are betting big on upside. Leverage stayed high, but funding rates turned positive – another bull signal.

Such events clear weak hands and set the stage for sustained gains.

Lower Inflation Data Sparks Fed Rate Cut Bets

US CPI came in softer than forecasts. Core inflation dropped to levels not seen in years. This reinforces bets on Fed rate cuts – maybe two or three this year. Chair Powell has hinted at easing if data stays friendly.

Rate cuts lower borrowing costs. They push money into stocks, crypto, and real assets. Bitcoin acts like digital gold in this setup. Ethereum gains from cheaper capital for Web3 projects.

Compare to bonds: Treasury yields fell after the data. Risk-on mood spread fast.

US Stock Futures Pull Back – Crypto Diverges

While crypto partied, US stock futures dipped. S&P 500 futures down 0.5%, Nasdaq off 0.8%. Tech stocks faced profit-taking after a long run. Geopolitical worries added pressure.

This divergence is key. Crypto decoupling from stocks shows maturity. BTC and ETH now react more to their own fundamentals and macro flows. It’s a win for adoption.

What’s Next? Outlook for Bitcoin and Ethereum

Bulls eye $100K for Bitcoin by month-end if momentum holds. Watch Fed speeches and next jobs data. Ethereum could ride to $4,000 on ETF inflows and upgrades.

Risks remain: High leverage could spark pullbacks. But sentiment is upbeat. Total crypto market cap topped $3.2 trillion.

Stay tuned for more updates. The and surge signals brighter days ahead amid shifting markets.

Prices as of Wednesday close. Always DYOR before trading.