Bitcoin continues to make significant strides toward the $100,000 mark, buoyed by the release of reassuring U.S. inflation data that sparked optimism in global markets. The digital asset hovered around $99,300, briefly surpassing the highly anticipated $100,000 threshold, after a more than 3% jump triggered by the latest inflation figures from the Bureau of Labor Statistics.
Bitcoin’s Surge and the Impact of Inflation Data
Bitcoin’s impressive rally is the result of the release of data indicating a cooling of core consumer prices, which reignited expectations of another interest rate cut by the U.S. Federal Reserve. The positive data lifted markets across the globe, with other cryptocurrencies like XRP and Solana also gaining momentum. The surge is fueling further speculation that the Fed may reduce rates by July, an outlook that has rejuvenated confidence in risk assets, including Bitcoin.
As of now, Bitcoin remains near the $99,300 mark, still within striking distance of $100,000. This milestone remains one of the key psychological barriers in Bitcoin’s price trajectory.
Trump’s Impact on Bitcoin: Speculation and Uncertainty
The markets are now focusing on the policy changes that could come after President-elect Donald Trump’s inauguration on January 20. Trump’s vow to make the U.S. a global leader in digital assets, including his support for a national Bitcoin stockpile, is fueling optimism. However, market participants are also weighing the risks associated with potential inflationary tariffs and immigration policies.
The question that lingers is whether Bitcoin’s 50% advance following Trump’s election victory, which saw the token hit a record $108,316 last month, will be followed by “sell-the-news” profit-taking once Trump officially assumes office.
Bitcoin Options Market: Uncertainty Over the Future
Despite the recent surge, market sentiment remains cautious. According to Sean McNulty, head of APAC derivatives at FalconX, recent trades in the Bitcoin options market suggest that traders are still reluctant to fully commit to the upward movement. The upcoming inauguration could either be a catalyst for further gains or lead to disappointment, as investors digest the new administration’s policies.
Cosmo Jiang, portfolio manager at Pantera Capital, noted that Trump has a number of executive orders ready to be implemented post-inauguration, some of which are expected to benefit digital assets. While short-term volatility may lead to some sell-off, Jiang believes that long-term investors who remain focused on the bigger picture will benefit.
Conclusion
Bitcoin’s flirtation with the $100,000 level comes at a time of heightened anticipation around U.S. inflation data and the political landscape under the incoming Trump administration. With both bullish and bearish forces at play, the coming weeks could prove pivotal in determining whether Bitcoin will maintain its upward momentum or face a short-term correction.
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