Bitcoin Hits $100000 Again as Inflation Data Fuels Optimism

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The climb followed a shaky start, where Bitcoin initially faltered after the daily close. However, renewed buying activity helped the cryptocurrency reclaim six figures. Traders brushed off concerns from earlier setbacks, such as Microsoft’s rejection of Bitcoin in its treasury strategy.

Popular trader Skew noted strong liquidity dynamics on Binance, observing a “passive buyer” driving demand. Skew also highlighted $97,000 as the recent equilibrium point for BTC/USDT on the exchange.

Fellow traders remained optimistic of further upside. Roman, a trader on X, pointed to a “reset” relative strength index (RSI) on daily charts to predict a clean move toward $112,000. Another trader, Johnny, had similar sentiments and said that Bitcoin’s resilience in the mid-$90,000 zone was a sign of its good health.

Macroeconomic conditions added fuel to Bitcoin’s rally. The U.S. Consumer Price Index report for November came as expected, reducing uncertainty in the market. This also strengthened speculation of a 0.25% interest rate cut by the Federal Reserve in the meeting due on December 18.

The analysts on the market are becoming more certain regarding the rate decision. Prediction platform Kalshi showed even higher confidence with estimates of a 95% chance of the move.

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