Cryptocurrency analysts are optimistic following favorable US inflation data, which resulted in a 3% increase in Bitcoin’s price. The US Consumer Price Index (CPI) report revealed lower-than-expected core inflation for December, causing Bitcoin’s price to rise from around $96,000 to nearly $100,000 on January 15. The appealing CPI data also positively impacted other assets like stocks and gold. Futures markets indicate a 30% likelihood for the Federal Reserve to cut interest rates in March, a move perceived as beneficial for cryptocurrencies. Bryan Armour from Morningstar expressed that cooling inflation could support Bitcoin prices, while futures for the coming months show a potential bullish outlook for Bitcoin. However, sustained growth depends on how US President-elect Donald Trump implements pro-crypto policies after assuming office on January 20. Despite a recent decline of about 10% in Bitcoin’s price since mid-December, some analysts believe it may be ready for a relief rally, with prices remaining above key support levels, indicating a potentially bullish market.

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