Bitcoin has crossed the $101,000 mark, and XRP along with AI tokens are leading the latest crypto rally.

This morning, U.S. inflation data came in as expected. This news has set the stage for a possible Federal Reserve rate cut next week.

Bitcoin bounced back from earlier losses, reaching $101,000 during U.S. morning trading. Ripple’s XRP continued its upward trend, which started after the regulatory approval of the RLUSD stablecoin. Plus, AI-related tokens are seeing significant gains, likely boosted by reports that Apple is working with Broadcom on an AI chip.

The crypto market is recovering today after a wave of selling earlier this week. It seems this selling has cleared out much of the long leverage. This rise in crypto prices aligns with a strong rally in the U.S. stock market. The Consumer Price Index report released this morning met economists' forecasts. As a result, traders believe the Federal Reserve is likely to cut its benchmark fed funds rate by another 25 basis points at their meeting next week. The Nasdaq has risen by 1.5%, while the S&P 500 is just under a 1% increase.

After dropping to $94,100 earlier this week, Bitcoin (BTC) has surged over 6% in the past 24 hours. It has now recovered to $101,000. The broader CoinDesk 20 Index has risen nearly 11% in that same time frame, with XRP leading the way with a 15% gain.

AI tokens are also performing well. NEAR Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) have all increased by 15% or more over the last 24 hours. This is likely due to the news about Apple’s AI chip development.

Stephen Alpher is CoinDesk's managing editor for Markets. He previously served as managing editor at Seeking Alpha. A native of suburban Washington, D.C., Stephen graduated from the University of Pennsylvania's Wharton School with a finance degree. He holds Bitcoin above CoinDesk’s disclosure threshold of $1,000.