Summary
- Bitcoin has risen 7.5% so far this year, including a move above $97,000, fueling discussion of a potential break above $100,000.
- US consumer price index (CPI) data came in in line with or below expectations, easing inflation worries and strengthening risk appetite.
- Continued inflows into spot ETFs, alongside prospects for US rate cuts and potential political pressure, were cited as key variables for Bitcoin’s trajectory.
Crypto Now
Briefly Topped $97,000 Last Week
Easing Inflation Data Lifts Risk Appetite
Bitcoin briefly rose above $97,000 last week. With a clear rebound so far this year, attention is turning to whether it can retake $100,000.
According to CoinMarketCap, as of 9 a.m. on the 18th, Bitcoin was at $95,101, up 7.5% year to date. It also surged at one point on the 15th to the $97,000 range. It was the first time Bitcoin traded around $97,000 since Nov. 14 last year, about 65 days ago.
Solid US inflation data is cited as a key driver behind the rebound. The US Department of Labor reported on the 13th that the consumer price index (CPI) for December rose 2.7%, in line with market expectations. Core CPI, which excludes volatile food and energy prices, rose 2.6%, below the market forecast (2.7%). Since the release, financial markets have seen fading inflation concerns and a strengthening tilt toward risk assets.
US President Donald Trump said after the data that “US inflation numbers are excellent,” adding that “growth-related indicators are also very good due to the impact of tariff policy.” He went on to stress that it shows “Federal Reserve (Fed) Chair Jerome Powell needs to cut interest rates in a meaningful way.”
In the crypto market, talk is growing that Bitcoin could move back above $100,000. Joshua Lim, global co-head of markets at FalconX, said, “If inflows into spot exchange-traded funds (ETFs) continue and the broader macro environment holds as it is, it could be in a position to challenge $100,000.”
Still, an imminent cut in the US policy rate appears difficult to bank on. CME FedWatch puts the odds of the Fed lowering rates at the end of this month at around 5%. Political pressure on the Fed for rate cuts, including from Trump, is also seen as a factor that could heighten uncertainty around the economic outlook.
JP Morgan Chase CEO Jamie Dimon said, “If the Fed faces political pressure, it could trigger higher interest rates and inflation.”
Jinwook Jin, BloombergBit reporter wook9629@bloomingbit.io
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