The crypto market’s overall valuation turned sharply higher Thursday, pushing its total value to $2.73 trillion as fading expectations for another Federal Reserve rate increase sent traders piling back into digital assets.
Crypto Market Rockets to $2.73T as Fed Rate Hike Fears Evaporate
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Key Takeaways
- Crypto’s market value hit $2.73 trillion as Fed rate fears eased Thursday.
- ZIG jumped 18.75% and ZEC gained 18.06% as altcoins lit up across the board.
- Crypto traders now turn to Sept. 11 CPI ahead of the Fed’s Sept. 15-16 meeting.
The move stretched across the broad market rather than staying concentrated in one corner. Bitcoin climbed roughly 4.8% and touched $81,364, while ethereum moved back above $2,500, solana reclaimed $104, BNB traded around $720 and XRP jumped roughly 8% to 9% toward $1.46.
Fed Rate Bets Flip and Crypto Traders Pile Back In
Federal Reserve Gov. Christopher Waller provided the spark after signaling that cooling inflation could convince him to support keeping the federal funds rate at its current 3.50% to 3.75% range when policymakers meet Sept. 15-16.
The reaction stretched well beyond crypto. Polymarket odds of a September rate increase fell from roughly 59% Wednesday to 42% following Waller’s remarks, while Treasury yields eased and gold gained about 2%. Crypto assets quickly joined the broader risk-on move.
Lower expectations for another rate increase matter because tighter monetary policy generally makes speculative assets less attractive. When those fears ease, investors can become more willing to move capital into stocks, crypto, and other assets carrying greater risk.
Altcoins Light Up as Double-Digit Gains Spread
The breadth of Thursday’s rally showed up clearly among altcoins. Zigchain (ZIG) led the pack with an 18.75% gain over 24 hours, followed by zcash (ZEC) at 18.06%, non-playable coin (NPC) at 17.78%, ethena (ENA) at 17.51%, and midnight (NIGHT) at 16.70%.
Plasma (XPL) climbed 16.25%, cardano (ADA) gained 13.34%, official trump (TRUMP) rose 13.30%, pepe coin (PEPE) advanced 13.19% and ordinals (ORDI) increased 12.89%, rounding out the market’s top 10 gainers. Other double-digit performers included layerzero (ZRO), worldcoin (WLD), zama (ZAMA), jito (JTO), bio protocol (BIO), tellor (TRB), cheems token (CHEEMS), trust wallet token (TWT) and pancakeswap (CAKE).
Even with green dominating the board, a small group moved the other way. The top 10 losers were velo (VELO), down 5.54%; goplus security (GPS), 4.88%; pyth network (PYTH), 3.13%; centrifuge (CFG), 2.52%; zano (ZANO), 1.46%; sky (SKY), 1.21%; bonk (BONK), 1.01%; morpho (MORPHO), 0.60%; apenft (NFT), 0.44%; and jelly-my-jelly (JELLYJELLY), 0.13%.
Institutional Flows Add Fuel Behind the Market
Institutional demand was already providing support before Thursday’s bitcoin rally. U.S. spot bitcoin exchange-traded funds recorded $101 million in net inflows Sept. 2 after $236 million in outflows the previous day. August produced about $3.5 billion in net inflows, making it the funds’ strongest month of 2026.
Strategy also recently returned to the market after a two-month break, purchasing 4,603 BTC for $370 million at an average price of $80,318. The company now holds 845,050 BTC, reinforcing the institutional backdrop surrounding the broader crypto rebound.
CPI Could Decide Whether the Rally Has More Room
The next major test arrives Sept. 11 with the release of August’s consumer price index (CPI). A hotter inflation reading could revive expectations for another rate increase, while softer numbers could strengthen the argument for holding rates steady at the Fed’s Sept. 15-16 meeting.
Until then, Thursday’s action has given the crypto economy fresh momentum. A $2.73 trillion market valuation, widespread altcoin gains, easing rate fears and renewed risk appetite have shifted the tone, but the next inflation report could determine whether that momentum has enough fuel to keep running. Bulls are crossing their fingers.
