The crypto market jumped Wednesday, following two days of digestion after bitcoin rallied to $100,000 for the first time ever last week.
The price of the flagship cryptocurrency was last higher by 5% at $101,413.74, according to Coin Metrics. Ether also rose 5% but has not reclaimed its key resistance at $4,000. The CoinDesk 20 index, which measures broader cryptocurrency performance, climbed more than 6%.
Bitcoin gets a boost following U.S. November inflation data
Crypto stocks Coinbase and MicroStrategy advanced 3% and 9%, respectively.
All but MicroStrategy are still in the red for the week.
Cryptocurrencies got an extra boost after the November consumer price index came in as expected, with a 0.3% rise from October and 2.7% increase from a year ago. Investors are betting that reading clears the way for the Federal Reserve to cut interest rates again at its December meeting next week.
Investors expect to see a continued chop for bitcoin around the $100,000 level but remain optimistic that its price could about double in the year ahead. Bernstein is forecasting a cycle high of $200,000 in 2025. Fundstrat’s Tom Lee said bitcoin has “upside to $250,000” next year, in his 2025 outlook published Wednesday.
Bitcoin’s current record is $103,844.05.
