Bitcoin (BTC) surged by 3% on Thursday, crossing the $98,500 mark for the first time this week. The price rally was largely driven by improved macroeconomic sentiment following news that the US and Russia agreed to resume diplomatic relations. With former President Trump advocating for a peaceful resolution to the Russia-Ukraine conflict, investors are increasingly optimistic about a drop in core inflation, which could potentially stabilize oil and gas supply lines.
This optimism has revived Bitcoin dominance (BTC.D), reversing a trend seen earlier this month when some investors pulled out of BTC in favor of altcoins or fixed-income assets, spurred by the higher-than-expected US Consumer Price Index (CPI) report from February 13. The possibility of a peaceful resolution to the Russia-Ukraine war is fueling speculations that inflationary pressures may ease, thus encouraging a renewed flow of capital into riskier assets like cryptocurrencies.
Moreover, institutional interest in Bitcoin has been further bolstered by Franklin Templeton’s announcement to launch spot ETFs for Bitcoin and Ethereum, which further reinforces BTC’s bullish sentiment.
Altcoin Market Performance: Volatility for Litecoin, Ripple Holds Gains
Altcoin traders experienced mixed results on Thursday. The end of the Russia-Ukraine conflict seems to have triggered a flow of capital, but specific crypto events have influenced capital allocation in the market. Litecoin (LTC) experienced a 5% pullback as traders booked profits following speculation about potential ETF filings. The Canary Litecoin ETF was recently listed on the DTCC website, further fueling speculation around the approval of a Litecoin ETF.
Despite LTC’s pullback, rising whale accumulation signals the potential for a rebound. Litecoin’s price briefly tested the $140 resistance level on Wednesday before retreating to around $128 by Friday. In contrast, Ripple (XRP) demonstrated strong resilience, holding above $2.65 with a 5% increase in the last 24 hours.
Ethereum (ETH) remained relatively flat at $2,700, hindered by ongoing controversies regarding network updates and insider selling from the Ethereum Foundation, which have dampened its short-term upside potential.
AI Tokens Lead the Crypto Market in a $30B Surge
The AI sector within cryptocurrency has diverged from broader digital asset trends, outperforming the overall market as institutional investors double down on artificial intelligence projects. The recent momentum can be traced to early February when Bittensor (TAO) posted double-digit gains, propelled by China’s Deepseek disrupting OpenAI’s market dominance.
The news of Russia’s potential reintegration into global trade has added further fuel to this rally, as energy-intensive industries—including AI and semiconductor firms—stand to benefit from cheaper energy costs. Both NVIDIA and TSMC, the world’s largest chipmaker, posted significant gains, and this bullish momentum has extended to crypto AI tokens.
Crypto AI tokens collectively surged by 15% on Thursday, pushing the sector’s capitalization to over $31 billion. Bittensor (TAO) led the charge, jumping 11% after its listing on Coinbase, which boosted liquidity and accessibility. Similarly, NEAR Protocol (NEAR) saw a 10.2% rise, reinforcing the growing demand for AI-focused digital assets.
Crypto Market News: Regulatory Moves and New Developments
KuCoin EU Seeks MiCAR License in Austria KuCoin EU has applied for a MiCAR license in Austria, aiming to operate as a regulated crypto-asset service provider within the European Economic Area (EEA). This move will enable the exchange to comply with the EU’s Markets in Crypto-Assets Regulation, enhancing its regulatory standing and expanding its product offerings in the region.
SEC Drops Appeal in Broker-Dealer Rule Case The Securities and Exchange Commission (SEC) has dropped its appeal over a Texas court ruling that blocked the expansion of broker-dealer registration requirements for crypto liquidity providers and automated market makers. This marks a setback for the SEC’s regulatory push and signals potential challenges in applying traditional financial rules to decentralized crypto markets.
Coinbase Expands Crypto Derivatives with Solana and Hedera Futures Coinbase has introduced CFTC-regulated futures contracts for Solana (SOL) and Hedera (HBAR) through Coinbase Derivatives, LLC. This expansion allows greater institutional and retail participation in the crypto derivatives market, while also increasing access to the growing crypto sector for institutional investors.
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