#What was the impact of inflation on Bitcoin's surge?
Bitcoin experienced a significant rise, climbing past $93.5K on Tuesday. This increase followed a brief dip to $90K on Monday morning. The boost is attributed to the latest US inflation data. The Consumer Price Index (CPI) showed a year-over-year increase of 2.7% in December, a figure that aligns with previous expectations. This stable inflation reading has reinforced confidence in the current policies of the Federal Reserve. As a result, the CME FedWatch Tool indicates a 97% likelihood that the Fed will keep interest rates unchanged at its upcoming meeting in late January.
The markets did initially react to the news regarding Fed Chair Jerome Powell being subpoenaed by the Department of Justice. However, the excitement lessened over the weekend when Bitcoin briefly retreated to $92K. The increase seen on Tuesday suggests that Bitcoin is recovering and regaining relevance as a hedge against political and economic uncertainties.
As Bitcoin rose by 3.5% from Monday's lows, other significant cryptocurrencies followed suit. Ethereum approached $3.2K, Solana reached $143, and XRP climbed to $2.1 within a 24-hour period.
#Which cryptocurrencies showed notable growth?
In addition to Bitcoin's rise, several other cryptocurrencies are noteworthy for their impressive gains. Among them, Story Protocol's IP token surged by 48%. Meanwhile, Monero recorded a remarkable 15% increase, achieving a new all-time high close to $700. Over the past week, Monero has shown extraordinary resilience, climbing over 50%. Investors should watch how these dynamics continue to evolve as market conditions shift.