Bitcoin Sees Longest Rally Since 2020 as Inflation Numbers Decrease
Bitcoin is experiencing its longest sustained rally since 2020, fueled by encouraging inflation data and growing optimism about the Federal Reserve's future monetary policy. The recent decrease in inflation numbers has sparked renewed interest in risk assets, including cryptocurrencies like Bitcoin and Ethereum (ETH).
Bitcoin was up 3.6% to about $18,194 as of 6:53 a.m. in New York. Ether and Avalanche both gained about 4%, indicating a broader positive trend across the crypto market. Bets that inflation is cooling and that the Federal Bitcoin, Ethereum (ETH), and other cryptocurrencies have all rallied recently with optimism about cooling inflation, slower Fed hikes aiding mood, and CPI inflation data driving the surge.
This Bitcoin price rally follows the growing cheer on Wall Street amid the cooling down of inflation and the expected softening stand by the Fed ahead. The expectation of less aggressive interest rate hikes by the Federal Reserve is creating a more favorable environment for cryptocurrencies, which have historically performed well when interest rates are lower.
The rally marks a significant shift from the crypto sector's performance earlier in the day, where it was mostly flat. The crypto sector was mostly flat for the day, as a short rally following better than hoped U.S. inflation data quickly lost steam. However, the renewed momentum suggests a more sustained recovery is underway. It is important to note, however, that Bitcoin (BTC) is trading at $82,800, down from its all-time highs, reflecting the volatility inherent in the cryptocurrency market.
The current rally recalls the period at the start of the COVID-19 pandemic, when bitcoin stood at just over $5,000. Its price climbed to nearly $69,000 by November 2025, in a time marked by high demand for alternative assets. While past performance is not indicative of future results, the current environment of declining inflation and potential easing by the Fed suggests a potentially positive outlook for Bitcoin and the broader cryptocurrency market.