Crypto markets surged on Wednesday, supported by signs of cooling U.S. inflation and fresh political uncertainty surrounding the Federal Reserve, which revived investor appetite for scarce, non-sovereign assets.
Bitcoin rose more than 4 percent in the past 24 hours, reclaiming the $95,000 level for the first time in a week and edging toward the top of its January trading range. Ether led gains, surging over 7 percent to about $3,330, while major tokens, including Solana’s SOL, Cardano’s ADA, XRP and BNB Chain’s BNB, advanced by as much as 9 percent.
As of 9:59 GMT, Bitcoin was trading 0.32 percent lower at $95,059, while Ether was up 6.08 percent at $3,326.51.
Rising Fed rate cut bets support crypto rally
The rally followed softer-than-expected U.S. inflation data, strengthening expectations that the Federal Reserve will continue cutting interest rates this year. Cooling price pressures helped ease bond yields and improve liquidity, conditions that have historically supported crypto and other risk assets.
Political uncertainty added to the momentum. Reports that the U.S. Justice Department issued grand jury subpoenas to the Federal Reserve earlier this week unsettled investors and weighed on the dollar, increasing the appeal of assets seen as less exposed to central bank risk.
Bitcoin is now nearing levels that previously prompted heavy selling, while derivatives data indicates leverage is rapidly building again, raising the likelihood of heightened market volatility.
Strategy buys $1.25 billion worth of Bitcoin
Bitcoin’s gains were also driven by Michael Saylor’s Strategy Inc. announcing the purchase of 13,627 coins at an average price of $91,519, totaling $1.25 billion.
This acquisition raises Strategy’s total Bitcoin holdings to 687,410 coins, cementing its status as the largest corporate holder of the cryptocurrency.
It marks the company’s biggest Bitcoin purchase since July 2025 and was financed through the sale of common stock and preferred equity. The move also eased concerns that Strategy had been slowing its crypto acquisitions, after buying only modest amounts since mid-December.
