Bitcoin Returns Near $100k Ahead of Trump's Inauguration

Bitcoin extended its rally for a third straight session on Thursday, hovering near the critical $100,000 level buoyed by broad market optimism after softer U.S. inflation data.

Bitcoin price continued to rally on Thursday morning, rising above the critical $99,000 level and coming closer to the record high of $108,244 hit earlier this month.

After softer U.S. inflation data sparked optimism in the market, Bitcoin price surged 2.5% to $99,478.4 by 01:12 ET (06:12 GMT).

However, the token pared some gains after rising to a session high of $100,499.8 on Wednesday.

Bitcoin price soared to a record high ahead of President-elect Donald Trump's inauguration on January 20.

Anticipation of crypto-friendly policies under the incoming administration drove the rally.

Pro-crypto campaign promises from Trump, such as the potential creation of a strategic national Bitcoin reserve and the appointment of cryptocurrency advocates to key regulatory positions, boosted investor confidence in the digital asset.

notably, the appointment of Paul Atkins, a crypto advocate, as the prospective chair of the Securities and Exchange Commission (SEC) attracted attention.

Atkins is expected to introduce a more accommodating regulatory framework for digital assets, compared to the stringent policies of his predecessor.

According to sources cited by Reuters on Wednesday, Republican officials at the SEC are preparing to revise the agency's cryptocurrency policies, possibly as early as next week when Trump takes office.

Several cryptocurrency analysts remain bullish on Bitcoin's price trajectory, with projections of substantial growth this year.

Most altcoins outperformed Bitcoin with solid gains in a sign of increased risk appetite.

The U.S. consumer price index (CPI) data on Wednesday showed that inflation in December rose largely in line with expectations, while core CPI was softer than expected.

The softer inflation report helped improve the market mood amid concerns over liquidity.

Ether, the world no.2 crypto, rose 4.4% to $3,3371.25.

World no.3 crypto XRP climbed 7.2% to $3.0616.

Solana jumped 7.1%, and Polygon rose 4.7%, while Cardano climbed 3.1%. Among meme tokens, Dogecoin gained 4.4%.