Dec 12 2024: Bitcoin extended its gains on Thursday, surpassing the $100,000 mark as in-line U.S. consumer inflation data bolstered expectations for a December Federal Reserve interest rate cut.
The largest cryptocurrency erased losses from the prior week, breaking out of its recent $90,000 to $100,000 trading range. Bitcoin climbed 3.5% to $100,875.9 by 00:47 ET (05:47 GMT).
Altcoins Rally Alongside Bitcoin
The broader cryptocurrency market followed Bitcoin higher, with altcoins recording even stronger gains as market sentiment improved. Optimism over potentially crypto-friendly U.S. regulations under a Donald Trump presidency also provided tailwinds for digital assets.
CPI Data Strengthens Rate Cut Expectations
Consumer price index data released on Wednesday met market expectations, solidifying bets on a 25-basis-point rate cut by the Federal Reserve next week.
Although inflation remains persistently high, raising questions about the long-term rate trajectory, lower near-term rates fueled risk-on sentiment. Wall Street indices hit record highs in overnight trading, further benefiting speculative assets like cryptocurrencies.
Microsoft Shareholders Reject Bitcoin Investment Proposal
Microsoft Corporation (NASDAQ:MSFT) shareholders voted against a proposal to invest in Bitcoin. The proposal, submitted by the National Center for Public Policy Research, argued for Bitcoin as a reliable inflation hedge.
Microsoft’s board recommended against the measure, citing concerns over Bitcoin’s volatility. Despite endorsements from MicroStrategy CEO Michael Saylor—whose Bitcoin-focused strategy drove MicroStrategy’s stock up 450% this year—Microsoft shareholders remained unconvinced.
Altcoins Shine as Markets Rebound
Altcoins mirrored Bitcoin’s recovery, regaining ground lost during the past week.
- Ether (ETH) surged 6.9% to $3,911.99.
- XRP climbed 4.1% to $2.4225.
- Cardano, Solana, and Polygon posted gains ranging from 5% to 15%.
- Meme coin Dogecoin added 6.4%.
This broad recovery reflects renewed optimism in the crypto market amid supportive macroeconomic conditions.
