Bitcoin surged above $38,000 in the morning Asian hours of Wednesday, as market observers expected rate cuts and hopes were renewed earlier this week about a spot ETF approval.

Solana’s SOL tokens have led gains in layer-1 or base blockchains. They have jumped 8% over the last 24 hours, reversing losses of the previous week. Avalanche AVAX jumped 6.6% while Cardano ADA and Tron TRX both rose over 5%.

The CoinDesk Market Index (CMI), a broad-based, market-tracking index, has risen by over 2.5%.

Bitcoin momentum began to increase late Tuesday after Federal Reserve Governor Chris Waller stated that recent data indicated a slowdown of the economy, and continued moderation in inflation. This showed current policies are in the “right place.”

Waller said that, if the inflation rate continues to fall, it would be a good idea to cut rates within a few short months.

Markets are influenced by interest rate decisions. Risk assets like stocks and cryptocurrency are usually hit by higher rates as investors take their profits and move into bonds.

Standard Chartered, a global bank , also doubled down on its April prediction that bitcoin (BTC), would reach $100,000 before the end of 2024. Analysts reasoned that the expected approvals for several spot bitcoin exchange-traded funds “are likely going to come sooner than anticipated,” which could act a catalyst for an upward trend.

Sam Reynolds is the editor.