Slowing inflation reignites expectations of interest rate cuts, Bitcoin returns to $100,000, achieving the largest increase since the beginning of the year.

Bitcoin surged to above $100,000 after posting its biggest gain since the start of the year, as reassuring US inflation data renewed bets on further cuts from the Federal Reserve and boosted global markets. On Thursday, Bitcoin briefly rose to around $100,800, and at the time of writing, the digital asset was hovering around $100,120. The digital tokens such as Ethereum and Ripple also saw more intense rebound. The report indicated that core consumer prices are cooling down, once again sparking bets on another Fed rate cut before July, which lifted the stock and bond markets. Now, the focus is shifting to the policy blitz expected after the inauguration of President-elect Trump on January 20, which may include measures to support the cryptocurrency industry. Speculators are weighing the risks of inflation, tariffs, and immigration policies, as well as Trump's pledge to make the US a global hub for digital assets. The Republican also supports the idea of establishing a national Bitcoin reserve. A key question is whether Bitcoin will experience a "sell the news" correction when Trump comes into power, as the price surged by 50% after his election victory on November 5 last year, reaching a record $108,316 last month. Cosmo Jiang, portfolio manager at Pantera Capital, said: "Our understanding is that Trump will issue a large number of executive orders shortly after taking office next week, some of which will be particularly favorable to digital assets. In the short term, we may see some investors selling the news, but these investors will likely regret it in the long run."