Bitcoin Surges Past $100,000 Mark on Renewed Optimism Surrounding Potential Fed Rate Decision

Bitcoin, the world's largest cryptocurrency, surged past the $100,000 mark on December 12, following recent US inflation data that bolstered expectations of a Federal Reserve interest rate cut

Bitcoin price surged past the $100,000 mark on Monday, December 12, as recent US inflation data bolstered expectations of a Federal Reserve interest rate cut, multiple reports noted.

After hitting an all-time high of $103,800 on December 5, Bitcoin struggled to maintain its position above $100,000 due to profit bookings. However, optimism surrounding a potential Fed rate decision lifted the token by nearly 4% to $100,665 at the time of writing.

MARKET MOMENTUM BACKED BY INFLATION DATA

The November Consumer Price index reported a 0.3% monthly rise and a 2.7% annual increase, aligning with forecasts and fuelling hopes for rate cuts at the Fed's December meeting next week.

Avinash Shekhar, Co-Founder & CEO of Pi42, stated that Bitcoin demonstrated bullish momentum by climbing back above $100,000, regaining its stance following macroeconomic data and hinting at rate reductions from the Fed. Rebounded back from the $94,000 and support at 20-day EMA, the retest signals a presence of bullish trends in the market.

He expressed optimism that BTC might target $112,000 and could go up another level to hit $125,000. Resistance at $104,088 could keep volatility in check in the shorter term as the market can see consolidations.

ALTCOINS AND CRYPTO MARKET ON THE RISE

The global cryptocurrency market cap increased by 5.89% to $3.66 trillion, with Bitcoin commanding a 54.7% market share, according to CoinMarketCap.

Major altcoins mirrored Bitcoin’s rally, with Ethereum rising 6.77%, XRP gaining 3.94%, Solana climbing 4.95%, and Cardano surging by an impressive 14.11% over the last 24 hours, as of the time of writing.

Meme coins also benefited, with Dogecoin increasing by nearly 6% and Shiba Inu soaring by almost 9% since the past day.

This broad-based crypto rally underscores the impact of macroeconomic factors, particularly inflation data, on market sentiment as traders anticipate the Federal Reserve's upcoming policy decisions.