TLDR:
- Bitcoin surged to $99,000+ after new CPI data release, approaching the $100,000 mark with a 2% daily increase, while the global crypto market reached $3.6 trillion
- Core CPI rose 0.2% month-over-month, showing signs of cooling inflation despite headline CPI increasing 0.4% in December
- The dollar index (DXY) declined 0.5% to 108.5, contributing to gains in both crypto and traditional markets
- XRP and Solana showed strong performance, with XRP jumping 6.6% to $2.85 and Solana rising 3.39% to $194.30
- Market expectations for Fed rate cuts in June increased to 44.5% probability, up from 39% previously
The price of bitcoin surged to over $99,000 on Wednesday, inching closer to the anticipated $100,000 mark following the release of new inflation data from the U.S. Bureau of Labor Statistics. The leading cryptocurrency jumped by $1,500 within minutes of the CPI announcement, marking a 2% improvement for the day.
December’s Consumer Price Index showed a 0.4% increase, slightly higher than November’s 0.3% rise. The year-over-year inflation rate came in at 2.9%, matching market forecasts but showing an uptick from the previous reading of 2.7%.
Core inflation figures, which exclude volatile food and energy prices, painted a more optimistic picture. The monthly core CPI increased by 0.2%, down from November’s 0.3%, while the yearly rate decreased to 3.2%, beating market expectations.

BTC Price
The global cryptocurrency market responded positively to the news, reaching a total value of $3.6 trillion. Bitcoin’s market capitalization now stands at nearly $2 trillion, reinforcing its position as the dominant player in the crypto space.
The dollar index reacted to the inflation data by dropping 0.5% to 108.5, retreating from its Monday high of 110. This decline in the dollar’s strength helped push both traditional and cryptocurrency markets higher, with the S&P 500 and Nasdaq opening up 1.4% and 1.7% respectively.
Alternative cryptocurrencies also showed strong performance in the wake of the inflation report. XRP experienced a notable surge, climbing 6.6% to reach $2.85 per token. Technical analysts point to XRP’s recovery from key price levels and its alignment with the 50-day moving average as supporting factors for its growth.
Solana joined the upward trend, rising 3.39% over 24 hours to reach $194.30. The altcoin’s performance adds to the broader market momentum seen across the cryptocurrency sector.
Market sentiment received an additional boost from the Producer Price Index data released on Tuesday, which showed a modest 0.2% increase in December. This reading supported bitcoin’s recovery from its recent dip below $90,000 earlier in the week.
The Federal Reserve’s potential monetary policy shifts have become a key focus for market participants. The CME FedWatch Tool now indicates a 44.5% chance of a rate cut at the June 18 meeting, up from the previous estimate of 39%.
Technical analysts have noted XRP’s particularly strong recovery pattern. Alex Kuptsikevich, chief market analyst at FxPro, highlighted the cryptocurrency’s bounce back from the 61.8% retracement level of its November-December rally, suggesting potential further gains ahead.
The broader market impact has extended beyond just price movements. Trading volumes across major exchanges have increased, indicating growing investor participation in the crypto markets.
Bitcoin’s price movement has shown resilience despite earlier consolidation below $100,000, which followed Federal Reserve Chair Jerome Powell’s cautionary comments in December. The recent inflation data has helped reignite optimism in the market.
The cryptocurrency’s approach to $100,000 comes after several weeks of range-bound trading, influenced by various macroeconomic factors and shifting monetary policy expectations. The market has remained responsive to economic indicators and central bank communications.
Traditional financial markets have shown correlation with crypto movements, as both sectors respond to the same economic data. The parallel rises in stock indices and cryptocurrency prices highlight the growing interconnection between different asset classes.
Current trading data shows bitcoin consolidating its position around $99,000, as market participants watch for potential catalysts that could push the price above the $100,000 threshold.
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