Bitcoin and major altcoins have rallied following mixed U.S. inflation data, signaling renewed optimism in the crypto market. With Bitcoin nearing $99,000 and altcoins surging, investors are eyeing the next moves in this volatile landscape.

CPI Data Fuels Crypto Rally

Core inflation cooled, boosting market sentiment.
The U.S. Bureau of Labor Statistics reported a drop in core CPI from 0.3% to 0.2% in December, sparking hopes for Federal Reserve rate cuts. Bitcoin soared by 10% to $99,000, lifting altcoins like Virtuals Protocol (+33.22%), ai16z (+26.13%), and Algorand (+21.18%).

Broader Market Impact

Stock futures and bonds followed the crypto surge.
Dow Jones futures jumped 700 points, S&P 500 futures gained nearly 100 points, and bond yields dropped across the board. This broad rally suggests investor confidence is rising across multiple asset classes.

Bitcoin’s Technical Momentum

BTC breaks key resistance, eyeing $108,000.
Bitcoin surpassed the 23.6% Fibonacci Retracement at $94,210 and the 100-day EMA, signaling strong bullish momentum. If this trend holds, BTC could retest its all-time high of $108,000. A drop below $89,000, however, could reverse this outlook.

Inflation Risks Remain

External factors could disrupt the rally.
Despite easing core inflation, headline CPI rose to 2.9%. Ongoing events like Los Angeles wildfires and potential inflationary policies under Trump’s administration could stall progress toward the Fed’s 2% target.

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