Bitcoin reenters $100,000 territory amid lower inflation data and expectations for Trump

Bitcoin’s price broke above $100,000 on Friday morning in Asia as investors anticipate slowing inflation and potential positive crypto policies from U.S. President-elect Donald Trump

According to The Block’s bitcoin price page, the cryptocurrency rose over 2% in the past day to reach $102,071 at around 10:17 a.m. in Hong Kong. The price level is the highest bitcoin has reached since Jan. 7, after which it plunged to lows near $90,000 at one stage.

“The market rally was largely driven by lower-than-expected CPI data, which temporarily eased inflation concerns,” said Min Jung, research analyst at Presto Research. 

The core consumer price index data, excluding food and energy, was 3.2% in December, coming in lower than expected and down from November’s 3.3%. 

“Additionally, Trump-related headlines played a significant role, including his plans to designate cryptocurrency as a ‘national priority’ and his openness to exploring a reserve backed by U.S.-founded cryptocurrencies,” Jung added.

Bloomberg reported Thursday that Trump is looking to issue an executive order to establish crypto as a national imperative, with a plan to set up a crypto advisory council to give crypto industry players a stronger voice in his administration.

Trump’s other crypto policy ideas include establishing an “America-first” strategic reserve that prioritizes coins founded in the U.S., such as USDC, SOL and XRP.

“The appointment of crypto-friendly officials and expectations of favourable regulatory changes have further fuelled optimism, driving price increases across various cryptocurrencies,” Rachael Lucas, crypto analyst at BTC Markets, told The Block.

Most other major cryptocurrencies have seen surges in price, with XRP gaining 9% to $3.33 and Solana adding 4.5% to $212.12. Ethereum, however, inched down 0.7% to trade at $3,363. 

The GMCI 30 Index, which measures the performance of the top 30 cryptocurrencies by market capitalization, rose 2.96% in the past day. 

“The broader market is cautiously optimistic, with macro-level focus squarely on inflation,” Jung said. “The lower CPI print has provided a temporary reprieve, but investors remain attuned to any signals of persistent inflationary pressures.”

Jung predicted that more headlines surrounding the possibility of Trump’s national bitcoin reserve could further drive volatility in the near future.

Story updated to add comments from Rachael Lucas