Bitcoin surged past the $100,000 milestone on Dec. 11, marking a dramatic comeback fueled by favorable U.S. Consumer Price Index (CPI) data and growing optimism around Federal Reserve policy shifts. The BTC/USD pair spiked nearly 4% on the day, according to data from Cointelegraph Markets Pro and TradingView, as traders digested macroeconomic developments and technical indicators pointing to sustained momentum.
The rally saw Bitcoin shake off recent disappointments, including Microsoft’s rejection of Bitcoin for its corporate treasury, as bullish sentiment returned to the market. The primary driver? Bitcoin CPI relief, with the November inflation data aligning closely with expectations, alleviating fears of aggressive monetary tightening.
Traders Spotlight Bitcoin’s Momentum
Popular trader Skew attributed the surge to a “passive buyer” accumulating BTC, noting that liquidity conditions on Binance played a key role. “Wide orderbook here between supply & demand,” Skew observed, pointing to the balance of buy and sell orders on the world’s largest exchange. Earlier, Skew identified $97,000 as the equilibrium point for the BTC/USDT trading pair, which served as a springboard for Bitcoin’s six-figure breakout.
Another optimistic view came from trader Roman, who highlighted Bitcoin’s “completely reset” relative strength index (RSI) on daily charts. Roman’s forecast? A “clean move” to $112,000 as market conditions align for further upside. Similarly, trader Johnny noted that Bitcoin’s repeated bounces in the mid-$90,000 zone set the stage for continued strength, describing the recent surge as a “textbook bullish rebound.”
CPI Data and Rate Cut Bets Bolster Market Confidence
The November CPI report, which matched market expectations, was a pivotal moment in Bitcoin’s recovery. The data reinforced hopes that inflation is under control, reducing pressure on the Federal Reserve to maintain high interest rates. As of Dec. 11, the CME Group’s FedWatch Tool indicated an 86% probability of a 0.25% rate cut at the Federal Open Market Committee (FOMC) meeting on Dec. 18.
“86% of Fed watchers think a 25bps rate cut is baked in for the December 18th FOMC meeting,” commented Keith Alan, co-founder of Material Indicators, a trading resource. Alan emphasized the importance of market perception, adding, “Watching to see how today’s reports influence the market’s likelihood of getting that cut next week.”
With inflation seemingly under control and a potential rate cut on the horizon, Bitcoin CPI relief has provided the perfect backdrop for BTC’s renewed strength.
Technical Factors Support the Bullish Case
Beyond macroeconomic catalysts, technical indicators suggest Bitcoin’s rally may have more room to run. Analysts pointed to a strong bounce from the $97,000 level and a fully reset RSI, signaling renewed bullish momentum.
Roman noted that Bitcoin’s daily RSI, a measure of overbought or oversold conditions, has been “completely reset,” opening the door for further gains. “We’re looking at a clean move to $112,000,” he told his followers on X, formerly Twitter.
Echoing this sentiment, trader Johnny emphasized that Bitcoin’s consolidation in the mid-$90,000 range served as a foundation for the next leg up. “This is a textbook setup for continued strength,” he wrote.
The six-figure milestone is a psychological barrier for many investors, and breaking through it with confidence has reignited hopes for a sustained bull run.
Market Sentiment Turns Bullish
The broader crypto market has rallied alongside Bitcoin, with altcoins also benefiting from renewed investor confidence. The favorable CPI data has shifted sentiment, with many traders now focused on the Federal Reserve’s next moves.
The narrative around Bitcoin CPI relief has become central to market discussions, as traders anticipate a dovish pivot from the Fed. The possibility of a rate cut is particularly significant for Bitcoin, as lower rates generally reduce the appeal of traditional safe-haven assets like bonds, driving liquidity toward riskier assets such as cryptocurrencies.
“Inflation data is the linchpin right now,” said crypto analyst Michael van de Poppe. “If the Fed follows through with a rate cut, we could see Bitcoin targeting $120,000 in the coming weeks.”
Can Bitcoin Sustain Its Rally?
While Bitcoin’s return to $100,000 has reignited bullish fervor, questions remain about whether the momentum can be sustained. Analysts caution that external factors, such as potential shocks in traditional financial markets or unexpected hawkish moves by the Fed, could still impact Bitcoin’s trajectory.
However, with Bitcoin CPI relief acting as a tailwind, the outlook remains optimistic. Traders and investors are closely watching key resistance levels, with $112,000 emerging as the next major target.
For now, Bitcoin CPI Relief data has reaffirmed its status as a leading asset in times of macroeconomic uncertainty. As the Dec. 18 FOMC meeting approaches, all eyes will be on the Fed’s decision and its implications for Bitcoin’s ongoing rally.
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