Bitcoin, XRP, Ethereum Rise. This Crypto Rally’s About More than Gemini and Figure IPOs.

Bitcoin jumped above $116,000 briefly overnight. (AFP via Getty Images)

Key Points

About This Summary

• Bitcoin, Ethereum, and XRP rose early Friday, boosted by macroeconomic data and hype surrounding crypto IPOs.
• In-line inflation data and a jump in jobless claims increased expectations for three rate cuts this year.
• Figure Technology had a strong IPO debut Thursday, and Gemini Space Station is set to begin trading Friday.

Bitcoin, Ethereum, and XRP were higher early Friday as U.S. economic data and hype around crypto IPOs boosted digital assets.

Cryptocurrencies were being supported by in-line consumer price inflation numbers and a stronger-than-expected jump in jobless claims Thursday—which led the market to embolden its view that three rate cuts are coming this year.

Lower borrowing costs tend to help cryptocurrencies by increasing investors’ risk appetite. But the proliferation of new crypto companies listing on the U.S. stock market is also a factor in the recent rally. Stablecoin issuer Figure had a good debut Thursday and crypto brokerage firm Gemini Space Station will start trading Friday.

Bitcoin was trading at $115,121 early in the day, up 1% over the past 24 hours, according to CoinDesk data. The world’s largest crypto spiked above $116,000 at one point overnight, before retreating. However, it’s still up more than 6% in September after slumping in the second half of August from its record above $124,000.

Ethereum , the second-biggest digital asset, rose 1.9% to $4,515, while XRP was up 1.2% at $3.05. There were also gains for Solana , up 6.4%, and Dogecoin, which climbed 4%.

Stablecoin issuer Figure Technology —the latest crypto-related company to list on the U.S. stock market—had a strong debut Thursday, jumping 24% after pricing its IPO ahead of its previous expected range.

Next up is Gemini Space Station, the crypto brokerage firm run by twins Cameron and Tyler Winklevoss, set to begin trading later on Friday. The company said late Thursday it sold 15.2 million shares at a price of $28 per share—above its marketed range of $24 to $26.

It’s another sign of hot demand for companies exposed to crypto.

Write to Callum Keown at callum.keown@dowjones.com