Cryptocurrency markets rallied on Wednesday following the release of surprisingly low U.S. inflation data, with Ethereum leading the charge among major assets.
Bitcoin (BTC) jumped over 4% to surpass the $95,000 mark, while Ether (ETH) outperformed with a gain of over 7%, climbing to around $3,330. Other major cryptocurrencies, including Solana (SOL), Cardano (ADA), and BNB, also saw significant gains of up to 9%.
The market-wide surge was largely driven by the latest U.S. inflation report, which came in lower than expected. This has reinforced expectations that the Federal Reserve will continue with interest rate cuts in 2026, a move that typically favors risk assets like cryptocurrencies by improving liquidity conditions.
Adding to the bullish sentiment were reports of political uncertainty surrounding the Federal Reserve, with the Justice Department reportedly serving grand jury subpoenas on the central bank. This has weakened the U.S. dollar and increased the appeal of non-sovereign assets like Bitcoin and Ethereum.
The sharp upward move triggered a wave of liquidations in the derivatives market, with over $688 million in positions wiped out in the past 24 hours. The vast majority of these—around $603 million—were short sellers who had been betting on a market downturn.
The rally demonstrates the crypto market’s sensitivity to macroeconomic factors and the significant impact of institutional and political news on investor sentiment. As Ethereum continues to show strength, the market will be watching closely to see if this momentum can be sustained.
