Bitcoin Rebounds Above $92,000 as US Inflation Data Meets Expectations

Bitcoin Rallies on Inflation Report

Bitcoin prices surged past $92,000 on January 13 following the release of US inflation data that aligned with market expectations, providing a boost to risk assets across the board.

The Consumer Price Index for December showed headline inflation at 2.7% year-over-year, unchanged from November and matching analyst predictions^[1][3][4]. On a monthly basis, prices rose 0.3%, also in line with forecasts^[4].

Core CPI, which excludes volatile food and energy prices and is considered more important for Federal Reserve policy decisions, registered 2.6% annually—slightly below the 2.7% expectation^[1][3][4]. The core measure increased 0.2% month-over-month^[4].

Market Reaction and Bitcoin Performance

Bitcoin responded immediately to the data release, with prices jumping from approximately $92,000 to around $92,800 in the minutes following the report before settling near $92,300^[4]. The cryptocurrency gained between 1% and 1.7% over a 24-hour period^[3][4].

One source reported Bitcoin trading at approximately $92,350, representing a 1.2% daily movement^[1], while another cited gains of 1.5% as markets opened on Wall Street^[3].

Traditional markets also responded positively to the inflation data. The S&P 500 hit new all-time highs, with futures surging above 6,990^[3]. US stock index futures rose approximately 0.3%, while the 10-year Treasury yield declined to 4.175% from above 4.19%^[4].

Federal Reserve Policy Outlook

The inflation data arrives at a critical juncture for monetary policy. According to the CME FedWatch Tool, markets are pricing in a 95% probability that the Federal Reserve will maintain current interest rates at its January 28 meeting^[1][4].

However, projections for the remainder of the year remain divided. Traders are betting on two rate cuts of 25 basis points each during 2026^[1], though JPMorgan takes a more cautious view, anticipating no rate changes throughout 2026 and potentially higher rates in 2027^[1].

Political Tensions Complicate Outlook

The inflation report comes amid heightened political tensions between President Donald Trump and Federal Reserve Chair Jerome Powell. Trump has repeatedly called for aggressive interest rate cuts^[1], while a Department of Justice investigation into Powell has added complexity to the situation^[1][4].

Bank of America analysts noted that criminal investigations against Powell could potentially delay any future rate cuts^[1]. The uncertainty surrounding Powell's position—his term ends in May—could create macroeconomic headwinds for cryptocurrency markets^[1].

Matt Mena, Crypto Research Strategist at 21shares, suggested the cooling inflation data "paired with the jobs data, seem to be inline with the fed's dual mandate and increase chances of further cuts this year even amidst the political noise surrounding the DOJ's investigation into Chair Powell"^[4].

Technical Outlook and Trading Activity

Despite the positive price movement, technical analysts identified significant resistance ahead. Volume-weighted average price trendlines around $94,000 and $96,000 represent a "huge resistance area" for Bitcoin^[3].

Exchange activity remained relatively calm, with netflows staying low and the Spent Output Profit Ratio hovering near 1, indicating minimal profit-taking by holders^[2]. Cross-crypto liquidations totaled nearly $170 million over 24 hours^[3].

Bitcoin has traded largely between $88,000 and $94,000 during January^[4], consolidating after reaching record highs above $126,000 in October 2025^[4]. Trading volume stood at approximately $48 billion at the time of reporting^[4].