- Bitcoin rebounded above $93,500 after inflation data met expectations.
- Markets are now pricing a near-certain Fed rate pause later this month.
- Altcoins rallied alongside BTC, with Monero hitting a new all-time high.
Bitcoin bounced sharply on Tuesday, pushing past the $93,500 level after briefly dipping to around $90,000 the day before. The rebound came as investors digested fresh US inflation data and reassessed political risk, shifting sentiment back toward risk assets with defensive appeal. After a shaky start to the week, BTC’s recovery suggests buyers are stepping back in with more confidence.
Inflation Data Reinforces the Fed’s Current Path
December’s CPI report showed consumer prices rising 2.7% year over year, matching both November’s reading and economist expectations. The lack of an upside surprise helped stabilize market expectations around monetary policy. According to the CME FedWatch Tool, traders are now pricing in a 97% probability that the Federal Reserve will hold rates steady at its late-January meeting. That clarity appears to have removed a short-term overhang for Bitcoin and other risk assets.
Political Noise Fades as Bitcoin Finds Its Footing
Markets initially reacted to news late last week that Fed Chair Jerome Powell had been subpoenaed by the Department of Justice, triggering a brief surge followed by a quick pullback. Bitcoin’s weekend push toward $92,000 failed to hold, but Tuesday’s rally suggests the market is reframing BTC as a hedge against political uncertainty rather than a victim of it. As macro and policy risks stack up, Bitcoin’s role in that narrative seems to be strengthening again.
Altcoins Join the Rebound
As Bitcoin climbed roughly 3.5% from Monday’s lows, the rest of the market followed. Ethereum rose toward $3,200, Solana advanced to around $143, and XRP pushed up near $2.10 over the past 24 hours. Risk appetite appears to be rotating back into major assets, not just BTC, which often signals broader market stabilization rather than a one-off move.
Breakout Performers Steal the Spotlight
Beyond the majors, a few tokens posted outsized gains. Story Protocol’s IP token surged nearly 48%, while Monero jumped about 15% to trade near $700, setting a new all-time high. XMR is now up more than 50% over the past week, highlighting how quickly momentum can return once sentiment flips.
