Bitcoin moved strongly higher and crossed $95,000 on January 13. The price increase came after new U.S. inflation (CPI) data showed that inflation is not rising, which gave investors hope that interest rates may be cut in the future.
What Happened?
The U.S. government reported that:
CPI increased 0.3% in December
Yearly inflation stayed at 2.7%
Core CPI (without food and energy) rose 0.2% monthly and 2.6% yearly
These numbers were close to expectations and showed that inflation is stable, not increasing.
After this news:
Bitcoin price reached around $95,222
Total crypto market value increased to about $3.12 trillion
Around $27 billion was added to the crypto market
Trump Reacts
Former U.S. President Donald Trump reacted on social media, saying inflation is low and the Federal Reserve should cut interest rates strongly. His comments added more confidence to the market.
Why This Is Important for Bitcoin
Stable inflation means the Federal Reserve may lower interest rates later
Lower rates usually help risk assets like Bitcoin
Big investors (institutions) now trade Bitcoin through ETFs and futures
Because of this, Bitcoin reacts more to U.S. economic data
Key Inflation Details
Housing costs were the biggest reason inflation stayed high
Services prices are still rising faster than goods
Wages and rent are still putting pressure on prices
Final Thoughts
Stable U.S. inflation is good news for Bitcoin. If interest rate cuts happen in the future, more money could flow into crypto. That’s why Bitcoin reacted positively and moved above $95K.
📈 Market sentiment is improving — but traders should still watch U.S. economic data closely.
