Bitcoin Nears $100K as Inflation Data and Trump's Diplomacy Spark Crypto Surge

Bitcoin and Crypto Markets Recover Amid CPI Data and Diplomatic Efforts

According to FXStreet, the cryptocurrency market experienced a recovery following the release of U.S. inflation data and diplomatic efforts by President Donald Trump to mediate the Russia-Ukraine conflict. The U.S. Consumer Price Index (CPI) rose by 0.5% in January, exceeding expectations of 0.3%, while the annual CPI climbed to 3.0%, surpassing the forecast of 2.9%. Core CPI, excluding food and energy prices, increased to 3.3% year-over-year, higher than the anticipated 3.1%. These figures have reduced the likelihood of rate cuts in 2025, impacting risk assets like Bitcoin. However, news of President Trump engaging in talks with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy to end the war positively influenced the crypto market. Bitcoin rose above $97,000, nearing the $100,000 psychological level, while altcoins like Ethereum, XRP, and Dogecoin also saw gains.

FXStreet highlights that the crypto market's recovery underscores its correlation with traditional stock markets, as the S&P 500 also rebounded. The report notes that President Trump's policies supporting the crypto industry, including regulatory measures, could further boost investor sentiment. Additionally, the potential resolution of the Russia-Ukraine conflict may help the crypto market recover from its 2022 bear market.

XRP and Bitcoin: Key Developments and Market Trends

FX Empire reports that the U.S. Securities and Exchange Commission (SEC) is set to hold a closed-door meeting that could significantly impact Ripple's XRP. The meeting may address the SEC's appeal against the Programmatic Sales of XRP ruling and the potential approval of XRP-spot ETFs. Former SEC lawyer John Reed Stark predicts that the SEC might suspend or dismiss crypto-related lawsuits, including the Ripple case. This development could accelerate XRP's regulatory clarity and drive its price toward $5, especially if an XRP-spot ETF is approved.

Meanwhile, Bitcoin continues to gain momentum, with discussions around a U.S. Strategic Bitcoin Reserve gaining traction. Senator Cynthia Lummis has proposed the Bitcoin Act, which would see the U.S. government acquire one million BTC over five years. FX Empire notes that such a move could trigger global FOMO (fear of missing out) among nations, potentially driving Bitcoin's price to $1 million faster than anticipated. Bitcoin closed at $97,881 on February 12, reflecting a 2.17% gain.

Market Reactions to Inflation Data and Tariff Concerns

Unchained reports that Bitcoin initially dropped to $94,000 following the release of higher-than-expected inflation data but later recovered to $97,000 by the end of the day. The Bureau of Labor Statistics revealed a 0.5% monthly increase in CPI for January, with core CPI rising to 3.3% year-over-year. The report highlights that Bitcoin's response to inflation data challenges its status as an inflation hedge, as it continues to behave like a risk asset.

Additionally, concerns over President Trump's proposed tariffs on major trading partners and global imports contributed to market volatility. However, analysts suggest that the market's recovery reflects a measured response to tariff threats rather than their immediate impact. Broad equity indexes like the S&P 500 and Nasdaq 100 also ended the day with gains, indicating a broader risk-on sentiment.

Ethereum and BNB Lead Crypto Market Recovery

The Block reports that Ethereum and Binance Coin (BNB) led the crypto market recovery, with Ether gaining 5% and BNB rising 12% in the past 24 hours. Analysts attribute the recovery to improved investor confidence and macroeconomic stability. Ethereum's price reached $2,739, while BNB climbed to $710, supported by technical factors and new token listings on Binance.

The report also notes that the market initially reacted negatively to the latest U.S. CPI data but later rebounded as investors digested the information. News of President Trump's efforts to mediate the Russia-Ukraine conflict further boosted risk-on sentiment. The broader cryptocurrency market saw a 3.2% gain, with large-cap cryptocurrencies showing stronger investor confidence.

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