Bitcoin rose above $93,500 on Tuesday, gaining more than 2% in 24 hours, as investors reacted to a combination of steady inflation data, political instability and renewed interest in cryptocurrencies as a macro hedge.
The move follows a brief drop earlier, when BTC recovered from weekend support levels around $91,000. US consumer price index (CPI) data released earlier showed December inflation held steady at 2.7%, as expected, with core CPI lower than analysts’ consensus.
Altcoins followed BTC’s move, with ether up 1.7% to $3,185 and BNB up more than 1.5%. The broader market, as measured by the CoinDesk 20 Index (CD20), rose 1.4%. Gold continued to rise, breaking through the $4,600 mark. The modest rise in cryptocurrency prices came as the S&P 500 and Nasdaq fell roughly 0.2% during the session.
“This morning’s CPI report provided the final anchor the market needed to clear the lingering data fog from late 2025,” said Matt Mena, crypto strategist at digital asset investment firm 21Shares.
“The lower-than-expected core CPI reinforces the Fed’s soft-landing narrative and raises the chances of further tapering this year, even amid political uproar over the Justice Department’s investigation into Chairman Powell.”
Lower interest rates tend to reduce the appeal of holding cash and encourage demand for risky assets, a category that includes bitcoin and other cryptocurrencies. However, on Polymarket, the chances that the Fed will cut rates by 25 basis points this month are small and amount to 3.6%, while on Kalshi they are at 5%, reports SEEbiz.
21Shares’ Mena said bitcoin still needs to break through the $93,500-$95,000 resistance zone, which has capped prices for nearly two months.
With the CPI report now out, several key developments could inject new volatility into the markets, Mena added.
The Digital Asset Market Structure Act is moving forward in the Senate, and the latest draft released late Monday shows a compromise on the returns of stable cryptocurrencies and some protections for decentralized finance (DeFi). If passed, the bill could provide a potential boost to crypto assets, offering a “stamp of approval” for institutional capital, Mena noted.
Investors are also watching a Supreme Court ruling on federal customs powers expected on Wednesday, which could weigh on the dollar and risk assets, Mena added.
