The world’s biggest cryptocurrency Bitcoin, has resumed its way past the $100,000 level on December 12, as the recent United States inflation data increased likelihood of the Federal Reserve (Fed) deciding on an interest rate cut, according to a Bloomberg report.
Since US President-elect Donald Trump‘s election victory, Bitcoin has surged by significant levels. Further, Trump’s moves to undo crackdowns on the sector imposed by Joe Biden’s administration has driven the rally, it added.
On December 5, Bitcoin cracked its record all-time high of $103,800. But has since struggled to stay above $100,000 as traders booked profit. However, bets on the likely Fed rate decision is boosting the token again.
Bitcoin Rising
On December 11, the crypto token rose 5 per cent in the US, and showed at $100,665 at 8.52 am on December 12 in Singapore, the report added.
At time of writing this, at 9.00 am in Mumbai, the token was at $101,3.73, according to data on Coinmarketcap.com. This is a 4.30 per cent increase over the previous day. Bitcoin market cap was also up 4.30 per cent to $2.01 trillion on December 12, the tracking website.
The global cryptocurrency market capitalisation on December 12 was up 5.53 per cent from the previous day, at $3.64 trillion. Bitcoin’s share in the market pie is a dominant 55.09 per cent, according to Coinmarketcap data.
Bitcoin has surged by close to 50 per cent since Trump’s November 2024 win. US spot Bitcoin exchange-traded funds (ETFs) have seen inflows worth $11 billion over the same period, as per the report.
Even the second largest token, Ether, has attracted around $2.4 billion worth of investments, it added.
Factors For Bitcoin Rise
The US CPI inflation data met the forecast and “cemented expectations” that the country’s central bank will reduce borrowings next week. Henry Elder, a principal at UTXO Management, told Bloomberg, “The market likes seeing inflation come in within expectations. Traders are “trying to figure out if $100,000 is a ceiling or a floor.”
Trump has indicated he favours a “strategic national Bitcoin stockpile”, though there is no concrete plan yet. Speaking to Bloomberg TV, his son Eric Trump was emphatic that the President-elect would “be an unbelievable ally to the industry.”
(With inputs from Bloomberg)
