Cryptocurrency prices surged after CPI data revealed eased price pressures, with Bitcoin nearing $99,000 and Ethereum regaining ground.

Bitcoin and other cryptocurrencies saw a major uptick following the release of the December Consumer Price Index (CPI) data, which revealed lower-than-expected core price pressures. After a challenging start to the week, with Bitcoin falling to around $90,000, the cryptocurrency rebounded strongly, trading near $99,000 early Wednesday. December's volatile trends saw Bitcoin oscillating between a high of $107,000 and dropping to just under $93,000. Additionally, the cryptocurrency market saw significant outflows from spot Bitcoin ETFs, including Fidelity’s Wise Origin Bitcoin ETF and iShares Bitcoin Trust ETF. Despite this, market sentiment is bolstered by predictions like H.C. Wainwright's rise in Bitcoin's 2025 price target to $225,000, alongside a broader outlook for a bullish 2024. Ethereum also experienced fluctuations, finishing lower but showing gains since earlier in 2024. President-elect Donald Trump's favourable stance on cryptocurrency and the recent launch of his $TRUMP meme coin, which surged in market value, further influenced recent optimism. Market participants closely monitor potential policy changes as this pro-crypto narrative unfolds. Cryptocurrency investments have continued to align more with broader equity trends rather than acting as inflation hedges. However, many investors remain focused on key strategies like managing risk and cutting losses, especially given the volatile nature of digital assets. As the industry matures, resources like ETF watchlists and tools to identify market patterns will be essential for retail and institutional investors alike. Analysts encourage traders to stay disciplined when navigating crypto's highs and lows.