Bitcoin Price Prediction as BTC Busts Pasts $96K Despite Inflation Worries
Quick overview
- Bitcoin's price has surged to $96,713, driven by improving regulatory sentiment and macroeconomic factors.
- The Consumer Price Index report indicated a 2.7% rise in prices, yet Bitcoin saw a 4.44% increase on Wednesday.
- Trade volume for Bitcoin rose by 60%, reaching $63 billion, while the wider crypto market also experienced gains.
- Positive legislative developments regarding cryptocurrency regulations are contributing to a more favorable environment for Bitcoin and other digital assets.
Bitcoin is now priced at $96,713 (BTC/USD) after macro developments and improving regulatory sentiment, even with inflation fears rising.
On Tuesday, the Consumer Price Index report showed that prices rose by 2.7% in December, attributed in part to the lengthy government shutdown. However, Bitcoin (BTC) surged by 4.44% on Wednesday thanks to talk of new cryptocurrency regulations and several macro factors that are working in favor of the digital asset.
BTC/USDTrade volume for the coin rose 60% on Wednesday, resulting in $63 billion in traded coins. At the same time, the wider crypto market is bullish, with Ethereum (ETH) rising 7% and Hyperliquid (HYPE) up 7.8% for the day so far.
Why Is Bitcoin Suddenly Improving?
For more than a week, the BTC price has been stuck around $91K, and as it tread water, there was strong speculation that the coin had reached the end of its lengthy bullish cycle. That hypothesis appears to be confirmed since the coin climbed higher this week than it has been in months. In fact, the last time the BTC rate was so high was exactly two months ago.
So, part of the reason that Bitcoin is bullish right now is because the low trend has played out, and the coin has become less volatile and less risky. BTC is also spiking right now because of positive legislative pressure. On Monday, U.S. legislators revealed that they were drafting a bill that would define cryptocurrency regulations. For years now, the regulatory framework surrounding crypto has been ill-defined and restrictive. With the current pro-crypto administration and changing regulatory sentiment, the stage is set for real freedom for cryptocurrency as a market.
If the regulation goes through, then that would make cryptocurrency safer to use and would make it far more appealing, likely leading to widespread adoption. This potentially opens the doors for banks and individual consumers to buy and sell crypto more easily and with less risk involved.
Cryptocurrency has also enjoyed a relatively strong 2026 so far, coming out of the downward trend that ended 2025. Investors are ready to give crypto another chance, and the environment is right for Bitcoin, Ethereum, and others to make a comeback. Key whale investors are also helping to push Bitcoin higher, as it was recently revealed that MicroStrategy had bought up more than 13,000 bitcoins. If the whales are confident enough to make bold moves with the digital asset, then smaller investors feel more compelled to give the digital currency a chance.
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