The price of Bitcoin (BTC) is back near $100,000 U.S. after new data showed inflation continuing to cool in the U.S.
A weaker-than-expected inflation reading for December has reignited investors’ risk appetite, sending cryptocurrencies sharply higher.
Bitcoin, the largest digital asset by market capitalization, has risen more than 3% in the last 24 hours to as high as $100,715.13 U.S.
Other cryptocurrencies are up even more, with the price of Ethereum (ETH) rising 7% to $3,433.16 U.S. and XRP (XRP) surging 15% to a record high above $3 U.S. per token.
The jump in crypto prices mirrors stocks, with the blue-chip Dow Jones Industrial Average rising 700 points on Jan. 15 and the technology-laden Nasdaq Composite index gaining 2.5%.
The renewed rally comes after the release of the December Consumer Price Index (CPI), which showed that inflation unexpectedly slowed in December.
The economic data pleased investors and analysts, igniting a rally in both stocks and crypto.
The latest price increase is a sharp reversal for Bitcoin, which as recently as January 13 was trading at $90,000 U.S.
Bitcoin had been steadily declining after U.S. Federal Reserve Chair Jerome Powell sounded an inflation warning in December, and as bond yields spiked, leading investors to sell risk assets.
Bitcoin’s price rose 120% in 2024 to reach a record high of just under $110,000 U.S.
