Bitcoin surpasses $100k on CPI data supporting potential rate cut, altcoins also rise

From Investing.com

December 12, 2024 01:28 AM:

Bitcoin rose on Thursday, reaching $100,875.9 after in-line U.S. consumer inflation data boosted risk appetite for a potential December interest rate cut. Broader crypto prices also rose, with altcoins showing stronger gains. The prospect of friendlier U.S. crypto regulations under a Trump presidency also contributed to the gains.

Investors are betting on a 25 basis point rate cut by the Federal Reserve next week following the release of inflation data. While inflation remains sticky, the prospect of lower near-term rates has boosted risk appetite, leading Wall Street indexes to record highs. Lower rates are favorable for speculative assets like crypto.

Microsoft shareholders voted against a proposal to add Bitcoin to the company’s balance sheet, rejecting the idea of investing in the cryptocurrency as a hedge against inflation. The company’s board recommended against the proposal, expressing a preference for less volatile assets. Comments from MSTR CEO Michael Saylor advocating for Bitcoin adoption had little impact.

Altcoins rebounded alongside Bitcoin, with the world’s second-largest crypto rising 6.9% to $3,911.99 and Ethereum climbing 4.1% to $2.4225. Other cryptos like Binance Coin, Solana, and Cardano saw gains between 5% and 15%, while meme token Dogecoin added 6.4%.

Read more at Investing.com: rises past $100k as CPI data keeps rate cut bets in play By Investing.com