Crypto Rally Follows Steady US CPI as Bitcoin Hits $95K, ETH $3.3K
Crypto markets rallied after U.S. December CPI matched expectations, lifting risk assets and sending Bitcoin above $95,000, Ether to about $3,333 and XRP above $2.15. Total crypto market cap topped $3.2 trillion with a 24-hour gain >3%. Headline CPI rose 2.7% YoY and core CPI 2.6% YoY, easing fears of tighter policy and boosting rate-cut odds for April. Short liquidations accelerated during Bitcoin’s breakout, closing roughly $408 million in short positions and adding upward momentum. Large-cap altcoins (ETH, XRP, SOL, BNB, LINK, ADA) tracked BTC’s move; NFTs outperformed (≈+8.3%) as speculative appetite returned. U.S. equities hit record highs (S&P 500 ~6,986 intraday), and regulatory progress — the Senate advancing a draft CLARITY Act — added institutional confidence. Key takeaways for traders: monitor BTC price/volume for confirmation of breakout, watch short-liquidation risk and funding rates, follow Fed messaging and CPI/macro prints for rate-cut expectations, and track CLARITY Act progress for potential institutional inflows.
Bullish
The news is bullish for crypto markets. CPI meeting forecasts and slightly softer core inflation reduced immediate rate-hike risk and increased odds of future Fed easing, which historically supports risk assets including crypto. Bitcoin’s breakout above $94K–$95K, accompanied by roughly $408M in short liquidations, indicates strong short-covering momentum and increased buying pressure; such technical breakouts tend to draw liquidity into large-cap altcoins (ETH, XRP, SOL, BNB, LINK, ADA) as observed. NFT outperformance signals renewed speculative appetite, often an early sign of broader risk-on flows. Regulatory progress (Senate movement on the CLARITY Act) lowers structural uncertainty and can facilitate institutional participation, a medium-term positive. Short-term risks remain: follow-up macro prints or hawkish Fed communication could reverse gains; elevated funding rates and potential concentrated leverage mean corrections from rapid long squeezes are possible. Overall, the alignment of easing inflation data, equity highs, short-liquidation dynamics, and clearer regulation points to a bullish bias both for immediate momentum trades and for increased institutional interest over the coming months.