The crypto market is staging a strong recovery on Wednesday, bouncing back from earlier sell-offs that seem to have cleared out much of the excess leverage. This rally coincides with a significant upswing in the U.S. stock market, triggered by this morning’s Consumer Price Index (CPI) report, which aligned with economists’ forecasts. The data has reassured traders that the Federal Reserve will likely reduce its benchmark interest rate by 25 basis points during next week’s meeting. The Nasdaq has surged by 1.5%, and the S&P 500 is up nearly 1%.

Bitcoin (BTC), which dropped to as low as $94,100 earlier this week, has rebounded to $101,000, reflecting a more than 6% increase in the last 24 hours. The CoinDesk 20 Index has risen by nearly 11%, with XRP leading the charge with a 15% gain.

AI-related tokens are also seeing significant gains, potentially driven by reports from The Information that Apple (AAPL) is teaming up with Broadcom (AVGO) to develop a new AI chip. NEAR Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) have all surged by 15% or more in the past 24 hours.