Bitcoin has once again crossed the $100,000 mark, sparking renewed optimism among investors. This comes as the U.S. Consumer Price Index (CPI) report revealed a 0.4% rise in inflation for December 2024, boosting expectations of further interest rate cuts by the Federal Reserve.
Following the CPI release, Bitcoin’s price surged to a 24-hour high of $100,860, up from its previous close of $99,514. The cryptocurrency had briefly touched $103,000 in December before retreating, but this is its first return to six figures in 2025. As of Thursday morning in London, Bitcoin hovered just above $100,000, maintaining its position after a 3% jump.
Altcoins also rallied, with Ethereum and XRP leading the charge. XRP reached $3.20, its highest level since January 2018, before settling at $3.00. Analysts noted that this aligns with historical resistance levels, suggesting increased volatility ahead as traders weigh profit-taking against further gains.
Market sentiment has been bolstered by institutional interest. The daily net inflow of U.S. spot Bitcoin ETFs reached $755 million on January 15, with Fidelity and ARK Invest leading the charge.
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Meanwhile, Grayscale Bitcoin Trust attracted $50 million in new investments, underscoring the renewed confidence in Bitcoin as a key asset.
Bitcoin’s rally is also tied to upcoming policy changes in the U.S. under President-elect Donald Trump, who has signaled support for making the U.S. a hub for digital assets. Market participants are weighing the potential impact of these policies, particularly regarding blockchain regulation and cryptocurrency taxation.
Traders now eye a potential breakout above $102,000, with $106,888 seen as the next key resistance level. Bitcoin’s social dominance metrics also highlight its rising prominence, further reinforcing its status as the leading digital asset.
