Market Watch

Bitcoin Surges Above $100K as Inflation Fears Fade Ahead of Trump’s Inauguration

The price of Bitcoin topped $100,000 Wednesday, surpassing the psychological mark for the second time since the Federal Reserve’s hawkish outlook put pressure on risk assets. When the U.S. central bank signaled in December that it would cut interest rates at a slower pace this year, Bitcoin tumbled from its peak price above $108,000. As signs of strength in the U.S. economy deepened inflation concerns, Bitcoin’s price fell below $90,000 on Monday.

Showing a nearly 4% gain over the past day, Bitcoin is trading hands at $100,444, as of this writing. Wednesday’s jump followed a fresh inflation snapshot from the Bureau of Labor Statistics, which showed that consumer prices rose as expected in December, while core inflation fell.

“The last potential hurdle for the markets—persistent inflation—has now been cleared,” Matt Mena, a crypto research strategist at 21Shares, told Decrypt. “With inflation showing consistent signs of cooling, this was the final piece of news the market was waiting on before confidently breaking the critical $100,000 resistance level for Bitcoin.”

As Bitcoin’s price rose, altcoins like XRP notched significant gains. The Ripple-linked cryptocy’s price has increased 11% over the past day, as of this writing—barreling past its December peak of $2.82 and peaking just one cent shy of $3 earlier Wednesday. Ethereum’s price has meanwhile increased nearly 8% over the past day, rising to $3,460. Those gains were slightly outpaced by Dogecoin and Solana, which swelled to nearly $0.38 and $203, respectively.

Wednesday’s inflation print assuaged concerns that Fed may not cut rates at all in 2025, amid recent data that the U.S. economy remains strong—and potential shifts in immigration and trade policy under Trump that could also put upward pressure on prices. Bitcoin’s price breached $100,000 for the first time ever in early December. The surge was likely due to a number of factors, including the growing adoption of spot Bitcoin ETFs in the U.S., the election win of a crypto-friendly Trump, and perhaps even the return of “McRib season.”

Inflation fears may have jeopardized Bitcoin’s post-election gains, but the crypto markets’ attention will likely shift toward President–elect Donald Trump ahead of his inauguration. The Republican is set to assume control of the White House next Monday, and he is poised to issue crypto-related executive orders on his first day. That will likely include the creation of a presidential crypto council, among other regulatory initiativesDecrypt reported Monday.

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