Bitcoin Jumps On Cooler Inflation; Ethereum, XRP, Dogecoin Gain — Analysts See BTC Trading In This Range Until The Fed Meet

Leading cryptocurrencies rallied on Wednesday as U.S. producer inflation unexpectedly cooled, boosting the chances of interest rate cuts.Bitcoin Sees Noticeable BreakoutBitcoin experienced a breakout, surging past $114,000 after days of range-bound movement. Trading volume rose 17% over the last 24 hours.Ethereum rallied to an intraday high of $4,450.42 but failed to sustain the gains, easing around $4,370 overnight. XRP also gained 1.55% in the 24-hour period.Over $264 million was liquidated from the cryptocurrency market in the last 24 hours, with $158 million in short positions wiped out.Bitcoin’s open interest increased by 2.11% in the last 24 hours, totaling a 6.4% rise this week. The latest spike boosted bullish positioning for the leading cryptocurrency, with longs outpacing the shorts, according to the Long/Short Ratio.Top Gainers (24 Hours) The global cryptocurrency market capitalization stood at $3.95 trillion, growing by 2.34% in the last 24 hours.US Producer Inflation Cools SharplyStocks clocked new closing highs on Wednesday. The S&P 500 rose 0.3% at 6,532.04, while the tech-heavy Nasdaq Composite closed up 0.03% to end at 21,886.06The Dow Jones Industrial Average was the outlier, falling 220.42 points, or 0.48%, to finish at 45,490.92.The Producer Price Index dropped 0.1% in August, reversing July’s spike and fueling hopes for Federal Reserve rate cuts. Analysts had expected a 0.3% increase, making the latest reading a notable miss.Traders have priced in a 92% chance that the Federal Reserve slashes interest rates by 25 basis points next week, according to the CME FedWatch tool.Will Bitcoin Rise To $118,000?In a note shared with Benzinga, analysts at cryptocurrency payment company B2BINPAY said that Bitcoin's push to $114,000 looked more like repositioning, rather than the start of a new surge."We believe that BTC will be trading in the $110,000-$118,000 range until the 17th-18th September Fed meeting, with dips likely supported," the analysts said. "Still, a clear break above $115,000 level may open the way to $120,000, while falling below $112,000 level risks causing a quick move toward $107,000."Ted Pillows, an angel investor and cryptocurrency market observer, compared Ethereum's current price movements to Bitcoin’s 2020-21 cycle."If I talk about a 3-4 month timeframe, Ethereum is going around $8,000-$10,000. But in the short-term, there’s a chance of lower prices," Pillows projected. Vivek Ramaswamy’s Strive To Board The Bitcoin Treasury Company With $1.5 Billion Raise Photo Courtesy: Yalcin Sonat / Shutterstock