Bitcoin rebounds after better-than-expected inflation data: CNBC Crypto World

Bitcoin rebounds after better-than-expected inflation data: CNBC Crypto World

Bitcoin Rebounds After Better-than-Expected Inflation Data: CNBC Crypto World

Bitcoin experienced a notable rebound, climbing above $99,000 following better-than-expected inflation data from the U.S., which fueled optimism across financial markets. The cryptocurrency surged 2.5%, bringing its price to $99,478.4 by Thursday morning, showing signs of further recovery after a brief dip earlier in the week.

The rally was further supported by the release of the U.S. consumer price index (CPI) data on Wednesday, which revealed that inflation in December had moderated more than anticipated. Core CPI, which excludes volatile food and energy prices, also came in lower than expected, reinforcing expectations of cooling inflation. This soft inflation report boosted market sentiment, allaying liquidity concerns and encouraging risk-on behavior.

Bitcoin had surged to a high of $100,499.8 on Wednesday before retracing slightly, but it remains in a strong upward trend, positioning itself near the critical $100,000 mark. The recovery came as investors grew optimistic about the potential for continued economic stability and the possible impact of a more crypto-friendly regulatory environment under the incoming administration of President-elect Donald Trump.

Trump's promises to create a national Bitcoin reserve and appoint crypto advocates to regulatory positions like the SEC have contributed to the renewed bullish outlook on Bitcoin. The recent price surge coincides with the anticipation of a more favorable regulatory climate for cryptocurrencies under Trump, including the potential appointment of Paul Atkins, a known crypto advocate, to head the SEC.

In addition to Bitcoin's impressive rally, the broader cryptocurrency market saw a significant uplift, with altcoins posting strong gains. Ethereum (ETH), the world’s second-largest cryptocurrency, jumped 4.4% to $3,371.25, while XRP, Solana, Polygon, and Dogecoin also experienced notable increases. The market’s positive reaction to the soft inflation data underscores a growing sense of confidence in both traditional and digital assets as investors digest the implications of the economic report.

This rebound in Bitcoin’s price reflects a broader optimism within the crypto sector, with analysts projecting continued growth as favorable economic conditions and regulatory shifts provide further support to the market.