Bitcoin, Ethereum, and XRP Prices Rise. What Can Spark a Crypto Comeback.

Bitcoin is now trading about 11% off the record high it hit earlier this month. (Michael M. Santiago/Getty Images)

Key Points

• Bitcoin increased by 1.1% to $113,103 over the past 24 hours, trading 11% below its record high.
• Ethereum, Solana, and XRP also saw gains, rising 4.8%, 5.6%, and 2.3% respectively.
• Investors are now pricing in a 95% chance of a half-point interest rate cut by year-end, up from 79% a week ago.

Bitcoin was edging higher on Wednesday, as crypto investors finally got some good news after a rough few days.

The world’s largest token was up 1.1% to $113,103 over the past 24 hours, according to data from CoinDesk. It’s now trading about 11% off the record high it hit earlier this month.

Ethereum rose 4.8%, Solana climbed 5.6%, and XRP added 2.3% over the past 24 hours, per data from the Kraken crypto exchange.

Created with Highcharts 9.0.1Sources: CoinDesk (BTCUSD, SOLUSD); Kraken​(ETHUSD, XRPUSD)

Created with Highcharts 9.0.1SolanaEthereumXRPBitcoinOct. 12Oct. 15-50510152025%

The moves came after Federal Reserve Chair Jerome Powell signaled that there’s more scope for the central bank to slash interest rates, given signs of weakness in the U.S. labor market. Investors responded by firming up their bets on lower borrowing costs—they’re now pricing in a 93% chance of a half-point cut by the end of the year, according to the CME Fedwatch tool, up from 79% a week ago.

Crypto markets could do with that sort of tailwind, considering prices plummeted late last week due to heightened trade uncertainty. When rates fall, that incentivizes traders to pile into riskier assets like growth stocks and digital assets, as investments with yields like bonds and savings accounts offer relatively weaker returns.

Write to George Glover at george.glover@dowjones.com