Solana Leads Layer-1 Token Gains as Bitcoin Crosses $38K

Bitcoin broke above the $38,000 level in Asian morning hours on Wednesday as hopes around a spot exchange-traded fund (ETF) approval were revived earlier this week, and traditional market watchers expected rate cuts.

Bitcoin momentum started to rise late Tuesday as Federal Reserve governor Chris Waller said recent data suggested a slowdown in the economy and continuing moderation in inflation showed current policies were in the “right spot.”

Waller also said that if inflation were to continue to decline, there’s a good argument to be made for rate cuts within a few months.

Interest rate decisions have the tendency to move markets. Higher rates usually mean risk assets such as stocks and cryptocurrencies take a hit as investors could take profits and invest in bonds.