Bitcoin Price Hits $100,000 as Fed Rate Cut Confidence Rebounds

Bitcoin Price Hits $100,000 as Fed Rate Cut Confidence Rebounds

Key Points:

  • Bitcoin price posted its largest gain of the early year, rising over $100,000 after U.S. inflation data fueled speculation of further Fed rate cuts.
  • President-elect Donald Trump’s upcoming inauguration has sparked interest in potential pro-crypto policies.
Bitcoin price registered its biggest daily percentage gain so far this year, piercing the $100,000 level in Asia Thursday morning.

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Bitcoin Price Jumps Above $100,000 On Fed Rate Cut Speculation

The cryptocurrency rose by 3% in the previous session on the heels of a U.S. inflation report that rebooted speculation about further cuts from the Federal Reserve, sending global markets higher.

Data from the Bureau of Labor Statistics showed core consumer prices trending cooler, fuelling optimism among investors. The prospects of another rate cut as soon as July by the Fed furthered the positive sentiment in traditional markets and digital assets. Tokens like Ethereum and XRP saw similar notable rallies, reflecting wider optimism in the crypto space.

The upcoming January 20 inauguration of President-elect Donald Trump has shed light on possible policy changes that may affect the cryptocurrency industry. Trump has voiced support for making the U.S. a leader in digital assets and has even suggested a national Bitcoin reserve.

Investors Question Bitcoin’s Rally Sustainability

Some market watchers now focus on gauging the possible inflationary trade and immigration policies under the Trump administration, a ripple of action within the economy onto the cryptocurrency. While some investors do see a glimmer of hope, according to Bloomberg, in measures that could prove supportive, other investors are being quite cautious.

The meteoric 50% rise in Bitcoin price since the election victory of Trump on November 5, which pushed the token to a record $108,000 last month, raises the question of whether the rally will run out of steam after the inauguration.

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