Bitcoin price jumps above $96,000 after softer US inflation data
On Jan. 14, Bitcoin climbed to $96,348, its highest level since Nov. 16. The day’s gain reached as much as 2.4%. Ether rose as much as 5.1%, lifting sentiment across the digital-asset market. In options markets, the rally has led to the closing of more than $0.5 billion in bearish crypto bets.
The green momentum strengthened after the release of US inflation data.The Consumer Price Index rose 0.3% in December versus November, while the core measure (excluding food and energy) increased 0.2%. On a year-over-year basis, CPI came in at 2.7% and core CPI at 2.6%. The numbers eased fears that the Fed may have to keep policy tight for longer than markets expect.
Investors also factored in the extraordinary pressure on the Federal Reserve’s independence. Recently, Jerome Powell said the US Justice Department served the Fed with grand jury subpoenas tied to an investigation into his June Senate testimony about the central bank’s building renovation project. In that backdrop, demand for “hard assets” looks more intuitive, and Bitcoin is again being compared with gold.
“Over the medium term, investors may add Bitcoin on a ‘gold catch-up’ narrative,” Arctic Digital researcher Justin d’Anethan told Bloomberg.
In derivatives, the move was amplified by a short squeeze. Over the past 24 hours, CoinGlass data showed liquidations of roughly $270 million in BTC shorts and about $600 million in crypto shorts overall. Another backdrop was MSCI’s recent pause in discussions about dropping companies with large crypto reserves, including Strategy, from some indexes.
Bitcoin ended 2025 down more than 6% and spent much of the past several weeks trading sideways. January’s rally now tests whether the market is ready to return to a sustained uptrend, or whether the impulse gets capped by routine profit-taking.
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