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Bitcoin Extends Rally Near $100K as Crypto Market Soars on Softer Inflation Data

Bitcoin extended its bullish momentum for the third consecutive session on Thursday, trading near the pivotal $100,000 mark. This rally is fueled by broad market optimism following softer-than-expected U.S. inflation data, which improved investor sentiment across asset classes.

As of 01:12 ET (06:12 GMT), Bitcoin rose 2.5% to $99,478.4, after briefly hitting $100,499.8 on Wednesday, marking a new milestone for the cryptocurrency market.

Bitcoin Nears $100K Ahead of Trump’s Inauguration
Bitcoin’s surge is also supported by market anticipation of a crypto-friendly administration under President-elect Donald Trump, set to assume office on January 20. The token recently reached a record high of $108,244, reflecting heightened optimism around potential regulatory shifts.

Trump’s campaign promises, including discussions of establishing a national Bitcoin reserve and appointing crypto advocates to regulatory bodies, have sparked confidence in the digital asset’s future. Notably, Paul Atkins, a known cryptocurrency advocate, is expected to take the helm of the Securities and Exchange Commission (SEC), signaling a possible easing of regulatory pressures on the crypto sector.

Reports from Reuters indicate that Republican officials at the SEC may begin revising cryptocurrency policies soon after Trump’s inauguration, potentially creating a more accommodating environment for digital assets.

Altcoins Outperform Bitcoin as Inflation Data Spurs Risk-On Sentiment
The broader cryptocurrency market also saw strong gains, with altcoins outperforming Bitcoin. The rally followed Wednesday’s U.S. consumer price index (CPI) data, which showed inflation largely aligned with expectations, while core inflation softened more than anticipated. This reduced inflationary pressures led to improved liquidity and a risk-on sentiment.

Ether, the second-largest cryptocurrency, jumped 4.4% to $3,3371.25, while XRP surged 7.2% to $3.0616. Other notable gainers included Solana (+7.1%), Polygon (+4.7%), and Cardano (+3.1%). Meme coin Dogecoin also climbed 4.4%, reflecting the broader enthusiasm across the crypto market.

With Bitcoin hovering near $100,000 and the market buoyed by both macroeconomic and regulatory optimism, many analysts maintain a bullish outlook, forecasting further gains in the coming months.

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