Bitcoin rallies past $93,000 after inflation data increased chances of further rate cuts

Market Overview - Bitcoin surpassed $93,500, gaining over 2% in 24 hours, driven by steady inflation data, political instability, and renewed interest in crypto as a macro hedge [1] - Altcoins such as ether (ETH) and BNB also saw increases, with ETH rising 1.7% to $3,185 and BNB up over 1.5%, while the broader market, measured by the CoinDesk 20 index, increased by 1.4% [2] Economic Indicators - The U.S. Consumer Price Index (CPI) for December remained steady at 2.7%, with core CPI lower than analyst expectations, reinforcing the Federal Reserve's soft landing narrative [1][3] - Lower interest rates are expected to enhance the appeal of risk assets, including cryptocurrencies [3] Market Resistance and Predictions - Bitcoin needs to break through the $93,500-$95,000 resistance zone, which has limited price increases for nearly two months [4] - If retail sales and housing data confirm consumer resilience, a decisive break of the resistance could lead to a run towards $100,000 before the end of the month [7] Legislative Developments - The digital asset market structure legislation is progressing in the Senate, potentially providing a "seal of approval" for institutional capital if passed [5] - The bill includes compromises on stablecoin yields and protections for decentralized finance (DeFi) [5] Political Context - Political tensions, particularly between President Trump and Federal Reserve Chair Powell, are raising concerns about the Fed's independence, with a Supreme Court ruling on federal tariff authority expected to impact the dollar and risk assets [6]