Bitcoin Surpasses $100K as Inflation Concerns Alleviate Ahead of Trump Inauguration
Bitcoin’s price surpassed $100,000 again, buoyed by positive inflation data and market sentiment following the Federal Reserve’s decisions on interest rates. Cryptocurrency prices, including altcoins like XRP and Ethereum, also increased significantly. Attention shifts towards President-elect Trump, who is expected to introduce crypto-related policies upon taking office.
On Wednesday, Bitcoin surged above $100,000 for the second time since a hawkish U.S. Federal Reserve put risk assets under pressure. The cryptocurrency had previously dropped from a peak of over $108,000 when the Federal Reserve announced a slower pace of interest rate cuts, exacerbated by inflation concerns that pushed Bitcoin’s price below $90,000 on Monday. As of the latest data, Bitcoin is now trading at $100,444, marking a nearly 4% increase in the past day, driven by a new inflation report showing expected consumer price rises in December alongside a decline in core inflation.
Matt Mena, a crypto research strategist at 21Shares, remarked, “The last potential hurdle for the markets—persistent inflation—has now been cleared. With inflation showing consistent signs of cooling, this was the final piece of news the market was waiting on before confidently breaking the critical $100,000 resistance level for Bitcoin.” As Bitcoin gained, alternative cryptocurrencies like XRP experienced notable increases, climbing 11% to approach their December peak, while Ethereum rose nearly 8% to $3,460, with Dogecoin and Solana also seeing significant gains.
The recent inflation data alleviated fears that the Federal Reserve would not cut rates by 2025, given indications of resilience in the U.S. economy and potential inflationary effects from anticipated immigration and trade policy shifts under President-elect Donald Trump’s administration. Bitcoin first breached the $100,000 mark in early December, attributed to factors such as the rising adoption of spot Bitcoin ETFs in the U.S. and the election of a crypto-friendly administration.
Attention will now shift towards President-elect Donald Trump, who is set to take office on Monday. It is anticipated that he will issue executive orders related to cryptocurrency upon inauguration, likely including the establishment of a presidential crypto council and other related regulatory initiatives. These events are expected to influence the cryptocurrency market significantly as traders adjust to new policy directions.
The article discusses the recent fluctuations in Bitcoin’s price, particularly its rise above $100,000 amidst shifting inflation concerns and a changing political landscape in the United States. It highlights the impact of the Federal Reserve’s interest rate policy on risk assets and delves into how new inflation data has affected investor sentiment. Moreover, the article explores the upcoming inauguration of President-elect Donald Trump and the anticipated regulatory developments concerning cryptocurrencies.
In conclusion, Bitcoin’s recent surge above $100,000 is influenced by a combination of easing inflation fears and positive sentiment following a recent U.S. inflation report. As the cryptocurrency market reacts to economic indicators and political changes, traders will be particularly focused on the upcoming policies of President-elect Donald Trump, whose administration is expected to implement significant regulatory initiatives in the crypto sector.
Original Source: decrypt.co
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