Bitcoin Breaks $101,000 as Markets React to U.S. Economic Data

Bitcoin has been surging in price, recently reclaiming the $100,000 mark and surpassing $101,000 as of the latest market movements.

This surge comes just after the cryptocurrency briefly dropped and saw over $1.6 billion worth of market liquidations.

The cryptocurrency’s recent gains are believed to be linked to the release of U.S. Consumer Price Index (CPI) data, which met expectations. Market sentiment is growing that the Federal Reserve may soon lower interest rates, further boosting optimism.

Bitcoin’s current all-time high stands at $104,088, as per Binance data. Meanwhile, in the past 24 hours, the broader crypto market has experienced liquidations amounting to $365 million, with the long/short ratio stabilizing at around 1:1.

As the U.S. prepares for its new presidential term starting January 20, 2025, the cryptocurrency space is keenly watching any potential moves, particularly regarding Bitcoin. There’s curiosity about whether the incoming president will follow through on promises such as establishing a Strategic Bitcoin Reserve.

At the time of writing, BTC has retraced back to around $100,500.