Bitcoin climbed past $100,000 once again after recent US inflation data supported expectations that the Federal Reserve would cut interest rates in the coming week.
On Wednesday, the leading digital asset surged nearly 5%, its largest increase in two weeks, before retreating slightly to $100,665 by Thursday morning in Singapore.
Smaller cryptocurrencies, in contrast, showed limited price movement, trading in relatively narrow ranges.
The rise in Bitcoin’s price follows a series of regulatory developments, including President-elect Donald Trump’s efforts to roll back stringent cryptocurrency regulations from the Biden administration.
His advocacy for a more crypto-friendly regulatory environment has already helped push Bitcoin to an all-time high of $103,800 on December 5. However, following that peak, the cryptocurrency struggled to maintain its position above the six-figure mark as investors cashed in on profits.
The latest US consumer price index figures showed inflation in line with forecasts. The data, however, could mean that there are now rising expectations for a potential Fed rate cut.
The news of a potential Fed rate cut has positively impacted investor sentiment. Not just Bitcoin, but the Nasdaq 100 stock index also came to a record high.
Henry Elder, a principal at UTXO Management, remarked that the market is encouraged by inflation data that meets expectations but remains uncertain whether the $100,000 price point will serve as a ceiling or a floor for Bitcoin.
In addition to regulatory changes, Trump has also expressed support for creating a national Bitcoin stockpile, though this idea remains controversial. His son, Eric Trump, voiced confidence on Bloomberg Television that the president-elect will be an “unbelievable ally” to the crypto sector.
Bitcoin has risen roughly 50% since Trumpโs victory in the November 5 election, with inflows into US Bitcoin exchange-traded funds (ETFs) amounting to around $11 billion. Meanwhile, Ethereum-based ETFs have seen $2.4 billion in inflows during the same period.
