The price of Bitcoin surpassed $100,000 on Wednesday, surpassing the psychological mark for the second time since the Federal Reserve’s hawkish outlook put pressure on risk assets.
When the American central bank reported in December that it would cut interest rates at a slower pace this year, Bitcoin fell from its peak price above $108,000. As signs of strength in the US economy added to inflation fears, the price of Bitcoin fell. below $90,000 Monday.
Showing a almost 4% gain over the past day, Bitcoin is trading at $100,444at the time of writing these lines. Wednesday’s jump follows a new inflation snapshot from the Bureau of Labor Statistics, which showed that consumer prices rose as expected in December, while core inflation has slowed.
“The last potential hurdle for markets – persistent inflation – has now been overcome,” said Matt Mena, crypto research strategist at 21Shares. Decrypt. “With inflation showing steady signs of cooling, this was the last news the market was waiting for before confidently crossing the critical $100,000 resistance level for Bitcoin.”
As the price of Bitcoin increased, altcoins like XRP saw significant gains. The price of the cryptocurrency linked to Ripple has increased 11% over the past day, as of this writing, surpassing its December high of $2.82 and just climax one cent less than $3 earlier Wednesday.
The price of Ethereum has meanwhile increased almost 8% over the past day, increasing to $3,460. These gains were slightly surpassed by Dogecoin and Solana, which reached almost $0.38 And $203respectively.
Inflation figures released Wednesday eased concerns that the Fed may not cut rates at all in 2025, amid recent data indicating the U.S. economy remains strong and potential changes in the picture. immigration and trade policy under Trump, this could also put upward pressure on prices.
The price of Bitcoin surpassed $100,000 for the first time in early December. This increase is likely due to a number of factors, including growing adoption spot Bitcoin ETFs in the United States, the electoral victory of a Trump favors cryptocurrenciesand maybe even the return of “McRib Season”.
Inflation fears may have undermined Bitcoin’s post-election gains, but crypto markets’ attention will likely turn to President-elect Donald Trump ahead of his inauguration.
The Republican is expected to take control of the White House next Monday and he is set to issue crypto-related executive orders on his first day. This will likely include the creation of a presidential crypto council, among other things.other regulatory initiatives, Decrypt reported Monday.
Edited by Andrew Hayward
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