Bitcoin Hits $82,000 Amid Fed's Dovish Signals; Ethereum, XRP, Dogecoin Also Spike: Analyst Theorizes BTC

Leading cryptocurrencies jumped on Thursday after a dovish shift in the Federal Reserve’s rate outlook lifted risk appetite.

Risk-On Sentiment Back?

Bitcoin climbed above $82,000, buoyed by a 56% surge in trading volume. Ethereum spiked to an intraday high of $2,526, while XRP and Dogecoin were up 6% each.

Cryptocurrency-related stocks also fell, with Strategy Inc. (NASDAQ:MSTR) and Bitmine Immersion Technologies Inc. (NYSE:BMNR) closing up 17.56% and 14.70%, respectively. 

Over $550 million was liquidated from the cryptocurrency market in the last 24 hours, with $470 million in bearish shorts alone wiped out, according to Coinglass data.

Bitcoin’s open interest soared 7.79% in the last 24 hours, indicating an influx of new money into the derivatives market. Notably, Binance’s retail and whale derivatives traders positioned against this move, cutting long exposure and turning net “bearish.”

"Greed" sentiment dominated the market, according to the Crypto Fear & Greed Index.

Top Gainers (24 Hours) 

The global cryptocurrency market capitalization expanded 4.49% in the last 24 hours to $2.72 trillion.

Stocks Extend Gains

Stocks lifted higher on Thursday. The Dow Jones Industrial Average rallied 624.16 points, or 1.18%, to end at 53,686.11.  The S&P 500 spiked 1.06% to close at 7,747.71, while the Nasdaq Composite gained 1.4% to settle at 26,584.06.