On Tuesday, Bitcoin surged beyond the $93,500 mark, achieving a gain exceeding 2% within a single day. This uptick was driven by a combination of stable inflation figures, ongoing political uncertainties, and renewed enthusiasm for cryptocurrencies as a hedge against broader economic risks.
After experiencing a slight decline earlier in the session, Bitcoin bounced back from weekend support levels near $91,000. The release of U.S. Consumer Price Index (CPI) data revealed that inflation in December remained steady at 2.7%, aligning with expectations. Notably, the core CPI came in below analysts’ forecasts.
Following Bitcoin’s lead, altcoins also experienced gains: Ethereum (ETH) increased by approximately 1.7% to reach around $3,185 while Binance Coin (BNB) rose over 1.5%. The overall market sentiment improved as reflected by the CoinDesk 20 (CD20) index climbing about 1.4%. Meanwhile, gold prices continued their ascent and surpassed the $4,600 threshold. Interestingly enough, this modest crypto rally occurred despite declines of roughly 0.2% in both the S&P 500 and Nasdaq indices during the same period.
“Today’s CPI report has offered much-needed clarity amid lingering uncertainties from late last year,” explained Matt Mena — crypto strategist at digital asset investment firm 21Shares. He added that “the lower-than-expected core CPI supports the Federal Reserve’s narrative of achieving a soft landing and increases prospects for additional rate cuts later this year despite political distractions such as DOJ investigations involving Chair Powell.”
Generally speaking, lower interest rates tend to diminish cash holdings’ attractiveness while boosting demand for riskier assets like Bitcoin and other cryptocurrencies. However, market prediction platforms show limited probability for an immediate Fed rate cut: Polymarket assigns just a 3.6% chance of reducing rates by 25 basis points this month, and Kalshi estimates it slightly higher at around 5%.
Bitcoin Eyes $100K Milestone
Mena pointed out that Bitcoin must overcome resistance between $93,500 and $95,000—a price ceiling that has constrained its movement for nearly two months—to continue its upward trajectory.
With recent inflation data behind us, a series of upcoming events could introduce fresh volatility into cryptocurrency markets.
The Senate is progressing on legislation concerning digital asset market structure. “The latest draft released Monday reveals compromises regarding stablecoin yield regulations along with protections tailored toward decentralized finance (DeFi),” says Mena. “If enacted, this bill might act as an endorsement attracting institutional investors to crypto assets.”
A Supreme Court decision expected Wednesday on federal tariff authority is another key event closely monitored by investors since it may influence both dollar strength and risk asset valuations.
The political landscape adds further complexity: rising tensions between former President Donald Trump and Federal Reserve Chair Jerome Powell—including Department of Justice subpoenas threatening criminal charges against Powell—have sparked concerns about potential impacts on Fed independence.
“if upcoming retail sales numbers alongside housing data confirm sustained consumer resilience,””—suggested Mena—“a decisive breakout above resistance levels near $93,‑,500-$95,$95,‑,000 could occur.” Clearing these barriers would pave way for an attempt toward hitting$100,$100,-000 before month-end—and potentially establish new all-time highs within this quarter,” he concluded.