Bitcoin Hovers Near $100,000 Mark as Optimism Grows Following Softer U.S. Inflation Data

Bitcoin extended its rally for the third consecutive session, hovering near the pivotal $100,000 mark, driven by optimism following softer U.S. inflation data.

Bitcoin extended its rally for the third session on Thursday, hovering close to the pivotal $100,000 mark amid optimism following softer U.S. inflation data.

By 01:12 ET (06:12 GMT), Bitcoin rose 2.5% to $99,478.4, sharply recovering this week after hitting a session high of $100,499.8 on Wednesday.

The cryptocurrency’s latest surge comes as markets are also awaiting the swearing-in of President-elect Donald Trump on Jan. 20, with anticipation of a strategic national Bitcoin reserve and regulatory reforms.

Among the key developments, Paul Atkins, a crypto advocate, is widely expected to be appointed Securities and Exchange Commission chair, signaling a more crypto-friendly regulatory landscape.

Moreover, Republican-led revisions to SEC policies could begin as early as next week, according to a report by Reuters.

Anticipation of Donald Trump’s presidency and his administration’s policies continue to drive optimism in the cryptocurrency market. A recent report by Axios highlighted discussions within the Trump administration regarding the establishment of a strategic national Bitcoin reserve. This initiative aims to safeguard a portion of the U.S. gold reserves in Bitcoin, a move that could significantly bolster the cryptocurrency's role in the national economy.

The Axios report also sheds light on Trump administration officials’ concerns over China's crypto mining dominance. To counter this, the administration is considering policies that would support U.S.-based crypto mining operations. Such measures are intended to enhance domestic crypto production and reduce reliance on foreign entities.

In a recent interview with CNBC, Donald Trump Jr. expressed enthusiasm for Bitcoin, describing it as "a great hedge against inflation." He also highlighted the potential benefits of cryptocurrencies in facilitating faster and cheaper international transactions.

While Trump himself has not made any public statements regarding Bitcoin, his son's comments and the reported discussions within the administration suggest a favorable stance towards cryptocurrencies. As Trump prepares to take office, the crypto community will be watching closely for any further developments or announcements related to digital assets.