Investing.com— Following weaker U.S. inflation figures, Bitcoin continued its advance for a third consecutive session on Thursday, staying close to the crucial $100,000 barrier and supported by general market confidence.
Bitcoin increased 2.5% by 01:12 ET (06:12 GMT) to $99,478.4.
This week, the token has had a significant recovery, peaking at $100,499.8 on Wednesday before losing some of its gains later in the day.
Bitcoin reaches around $100,000 before Trump's inauguration.
Bitcoin has seen a sharp increase in the run-up to President-elect Donald Trump’s inauguration on January 20, most recently hitting a new high of $108,244.
The expectation of crypto-friendly legislation under the new administration is largely responsible for this rising trend.
Investor trust in the digital asset has increased as a result of Trump’s campaign pledges, which included the possible establishment of a strategic national Bitcoin reserve and the appointment of proponents of cryptocurrencies to important regulatory roles.
Notable is the selection of well-known cryptocurrency supporter Paul Atkins as the Securities and Exchange Commission’s (SEC) potential head.
In contrast to his predecessor’s strict regulations, Atkins is anticipated to implement a more lenient framework for digital assets.
According to people familiar with the situation, Reuters reported on Wednesday that Republican officials at the SEC are anticipated to begin updating the agency’s cryptocurrency policy, potentially as soon as next week when Trump takes office.
Numerous cryptocurrency specialists are optimistic about the direction of Bitcoin’s price, predicting substantial increase this year.
Today's cryptocurrency price: most altcoins rise following little US inflation
The majority of altcoins in the larger cryptocurrency market surged significantly more than Bitcoin, indicating a greater willingness to take risks.
This follows the release of the U.S. consumer price index (CPI) statistics on Wednesday, which revealed that while core CPI was lower than anticipated, inflation in December grew mostly as anticipated.
Liquidity worries were allayed by a more positive outlook brought about by a weaker inflation data.
Ether, ranked second in the world, surged 4.4% to $3,3371.25.
Third-ranked cryptocurrency XRP increased 7.2% to $3.0616.
FAQ
Bitcoin’s rise can be attributed to weaker-than-expected U.S. inflation figures, boosting investor confidence. The market’s positive outlook, along with expectations of favorable crypto policies under the new U.S. administration, has contributed to the price increase.
Weaker inflation data typically indicates a more stable economic environment, reducing concerns about market instability. This, in turn, can lead to increased demand for alternative investments like Bitcoin, contributing to its price surge.
Bitcoin has seen a surge leading up to Trump’s inauguration due to expectations of crypto-friendly legislation. His proposed policies, including a national Bitcoin reserve and the appointment of crypto proponents to key regulatory roles, have bolstered investor optimism.
Yes, many altcoins have surged more than Bitcoin, reflecting a broader market confidence. Cryptocurrencies like Ether and XRP have seen significant increases, driven by the release of positive U.S. inflation data and improving market sentiment.
Many cryptocurrency experts are optimistic about Bitcoin’s price in 2025, predicting continued upward momentum. The growing investor trust, along with favorable regulatory developments, could push Bitcoin’s price even higher in the coming months.
