Bitcoin Surges Past $100,000 as US CPI Data Sparks Market Rebound

COINOTAG News reports that the recently released US inflation data for December has shown **encouraging signs** for the economy. The Consumer Price Index (CPI) was generally in line with forecasts, but notably, the core CPI recorded its first drop in six months, falling short of expectations. This shift has prompted traders to recalibrate their forecasts, advancing the expected timeline for the **Federal Reserve’s** initial rate reduction from September to June. The likelihood of two rate cuts within the year has significantly increased.

The reaction in the stock market was swift, with the Dow Jones gaining **1.65%**, the S&P 500 up by **1.83%**, and the Nasdaq experiencing a robust **2.45%** rise. Investors were particularly buoyed by strong earnings from US banks, marking the largest single-day market surge since November 2024. The tech sector outperformed, led by **Tesla** and **Nvidia**, which saw significant recoveries.

In the crypto space, the market rebounded collectively following the **CPI announcement**, propelling **Bitcoin** above the $100,000 mark once again. The Coinbase BTC premium returned to a positive stance, indicating renewed investor confidence. The **altcoin** market benefited from this resurgence, as did the AI Agent sector, showcasing a remarkable comeback with a notable increase in total market value.

Meanwhile, in commodities, the **US Dollar Index** faced volatility post-data release, leading to a brief decline; however, it ultimately steadied with a marginal decrease. This fluctuation contributed to a rise in oil prices, which jumped over **3%**, while **gold** prices continued their upward trajectory, reflecting the market’s response to the overall economic climate.

Despite the positive CPI movement, analysts stress that a single data point will not destabilize the **Federal Reserve’s** current policy approach. The upcoming rate-setting meeting is expected to keep interest rates steady as the market remains cautiously optimistic. Additionally, eeee.com has introduced a USDT stablecoin offering an annualized yield of **5.5%**, catering to investor needs for **hedging** against market volatility.