Bitcoin experienced a remarkable rise, surpassing $93.5K on Tuesday after recovering from a dip to $90K earlier that day. This surge was driven by new inflation data from the US and changing political dynamics.
The recent Consumer Price Index (CPI) report indicated a year-over-year price increase of 2.7% in December, aligning with both November’s figures and market expectations. This stable reading has enhanced confidence in the Federal Reserve’s current approach, with the CME FedWatch Tool indicating a 97% likelihood that interest rates will remain unchanged during their upcoming meeting at the end of January.
Initially, markets reacted to Friday’s announcement regarding Fed Chair Jerome Powell being subpoenaed by the Department of Justice; however, any momentum gained over the weekend as Bitcoin reached $92K quickly dissipated. Nevertheless, Tuesday’s performance indicates that Bitcoin is regaining its status as a safeguard against political instability and broader economic uncertainties.
As Bitcoin climbed 3.5% from Monday’s lows, other significant cryptocurrencies followed suit: Ether approached nearly $3.2K, Solana rose to $143, and XRP increased to $2.1 within just 24 hours.
Among notable performers in this rally was Story Protocol’s IP token which soared by 48%, while Monero (XMR) surged by 15%, reaching an all-time high close to $700—marking an impressive gain of over 50% for the week.