Bitcoin (BTC-USD) has rebounded back above the $100,000 (£78,300) mark, rising by over 3% on Thursday, according to CoinGecko data. The latest surge comes as cooling US inflation and growing expectations of Federal Reserve interest rate cuts fuelled investor optimism.
The rally comes after the US Bureau of Labour Statistics reported that the Consumer Price Index (CPI) rose 0.3% in November, marking a 2.7% year-on-year increase — in line with market forecasts. The data suggests that inflation remains under control, boosting confidence that the Federal Reserve will follow through on anticipated interest rate cuts. The CME FedWatch tool shows that 98.5% of investors expect a cut at the Federal Open Market Committee (FOMC) meeting next week.
Market optimism spurs broader crypto rally
The news impacted the digital asset market, sending cryptocurrencies like ethereum (ETH-USD) and solana (SOL-USD) up, gaining 6% and 7% respectively.
BRN analyst Valentin Fournier attributed the rally to renewed confidence in easing monetary policy and a strong institutional presence. “Bitcoin reclaimed the $100,000 level, while ethereum is approaching $4,000, and with the current momentum, strong underlying catalysts, and sustained institutional support, the bitcoin market is poised for further growth,” Fournier said.
Amid bitcoin’s rally, institutional players are continuing to accumulate. Software intelligence firm MicroStrategy (MSTR) reportedly added $2.1bn ($1.65bn) worth of bitcoin last week, marking its fifth consecutive week of accumulation.
Analysts at QCP Capital highlighted MicroStrategy’s move as a sign of confidence in bitcoin’s long-term trajectory. “This move signals strong support and reinforces their $42bn strategy, suggesting more acquisitions are on the horizon,” QCP analysts noted.
MicroStrategy co-founder Michael Saylor has emerged as one of bitcoin’s most prominent institutional advocates, with its total holdings now exceeding 423,650 bitcoin.
