The Bitcoin price surge dominated the cryptocurrency market today, propelling the overall market capitalization to new heights ahead of a highly anticipated Federal Reserve rate announcement. The leading digital asset briefly soared above $94,500 before retracing, sparking increased volatility across the sector.
Bitcoin Price Surge Sets the Tone
Bitcoin experienced a sharp upward swing in the past few hours, touching $94,500 amid speculation surrounding a potential interest rate cut by the Federal Reserve. According to data from Polymarket, the probability of a 25-basis-point rate reduction had climbed to 96%, fueling bullish sentiment in the crypto market.
Fed Chairman Jerome Powell is expected to announce the central bank’s decision later today, an event closely watched by traders. This announcement could drive further volatility in the Bitcoin price surge and the broader digital asset space. Despite its impressive rally, Bitcoin was unable to hold its peak, and as of this report, it is trading around $93,000, marking a 3% daily gain.
Bitcoin’s market capitalization has now approached $1.85 trillion, with its dominance over other cryptocurrencies standing at approximately 55.38%.
Altcoins Benefit from Bitcoin Price Surge
While Bitcoin led the charge, top altcoins also enjoyed substantial gains. Ethereum jumped nearly 9% in the last 24 hours, reaching about $3,350. Cardano followed with a robust 12% rise to touch $0.47. Other notable performers included Avalanche, Polkadot, Worldcoin, Internet Computer, Hyperliquid, and Dogecoin, each achieving gains between 5% and 8%. Zcash extended its rally, now trading above $430.
A few altcoins, such as Pi Network, Bittensor, Tron, and Bitcoin Cash, reported modest declines. Overall, the total cryptocurrency market capitalization climbed by 3.3% compared to the previous day, reaching approximately $3.26 trillion.
What Drives the Latest Bitcoin Price Surge?
The current Bitcoin price surge is widely attributed to growing expectations of a dovish pivot from the Federal Reserve, which could lower interest rates and inject fresh momentum into risk assets. Historically, such macroeconomic shifts have impacted digital assets, and traders remain alert for further developments.
For a wider look at how central bank policy affects crypto, Investopedia offers an in-depth analysis.
With the Fed’s decision imminent, market participants are bracing for potential swings in Bitcoin and the larger crypto market, reinforcing the significance of this latest Bitcoin price surge.
