Bitcoin has returned to $100,000, driven by positive U.S. inflation data which has sparked renewed expectations for Federal Reserve rate cuts. The cryptocurrency saw a notable rise, along with Ethereum and Ripple. Investors are focused on upcoming cryptocurrency-supportive policies from the Trump administration and are weighing the implications of inflation and immigration issues.

Bitcoin has surged back to $100,000, marking its most significant rise this year, largely influenced by encouraging U.S. inflation data that revived expectations for a Federal Reserve interest rate cut. On Thursday, the cryptocurrency briefly reached approximately $100,800 before settling around $100,120. Other cryptocurrencies, including Ethereum and Ripple, also experienced notable rebounds amid this market activity. Investors are closely monitoring possible cryptocurrency-friendly policies following the upcoming inauguration of President-elect Trump.

The recent inflation figures from the U.S. Bureau of Labor Statistics indicated a cooling in core consumer prices, prompting speculation about potential interest rate reductions by the Federal Reserve. This has not only buoyed Bitcoin but also positively impacted the broader stock and bond markets. Investors are eager to see how Trump’s administration will approach digital assets, particularly with his commitment to making the U.S. a global hub for cryptocurrencies and his intentions regarding potential executive orders that may favor this sector.

In summary, the resurgence of Bitcoin above the $100,000 mark is a significant development largely fueled by optimistic inflation data and expectations of interest rate cuts. As investors await new policies from the incoming administration, the cryptocurrency landscape remains dynamic, with potential for both bullish trends and sell-offs as market participants react to news and policy changes.

Original Source: longportapp.com

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