Bitcoin Surges Past $93,000 Following US CPI Data: Is the Bull Market Slowly Returning?

Bitcoin has risen above $93,000 on Monday, driven by recent US inflation figures that indicate price pressures are remaining manageable. This increase suggests a return of risk appetite following weeks of selling linked to exchange-traded funds (ETFs).

Key Takeaways:

Bitcoin has surpassed $93,000, driven by stable US inflation data.
The Consumer Price Index shows inflation at 2.7%, indicating manageable price pressures.
The current market environment supports risk assets like Bitcoin as inflation stabilizes.
Bitcoin’s recent price increase is also tied to a recovery phase after significant ETF-related selling.
The cryptocurrency is building a support level between $88,000 and $92,000, potentially aiming for $95,000 and even $100,000 if demand improves.

The Consumer Price Index (CPI) report revealed that inflation is rising steadily but at a moderate pace. Prices have stabilized, signaling neither a sharp increase nor a significant drop. This balance minimizes the likelihood of additional interest rate hikes and supports assets like Bitcoin that benefit from stable liquidity.

Understanding the Impact of US CPI Data on Market Sentiment

The latest CPI report reveals inflation running at approximately 2.7% year-over-year. While prices are still climbing, the rate of increase is substantially slower compared to the inflation spikes seen in 2022 and early 2023.

The US Inflation Rate (CPI) ended 2025 at 2.7%, marking the 58th consecutive month above the Federal Reserve’s 2% target. Such sustained inflation levels haven’t been seen since 1997 when the Fed Funds Rate exceeded 5%.

For households, this means that living costs are high but not escalating quickly. For the markets, it signals that the Federal Reserve can maintain steady interest rates rather than implement further tightening.

A stable inflation environment typically encourages risk assets. When inflation does not spike or plunge, investors feel more confident in holding assets such as stocks and cryptocurrencies.

Following the CPI data release, Bitcoin quickly reacted, soaring past $93,000 after hovering around $90,000 earlier that day.

Bitcoin’s Recovery: More Than Just Macro Factors

The uptick in Bitcoin's price wasn’t an isolated event. It coincided with a period of stabilization for Bitcoin following a significant pullback driven by ETFs.

Earlier in January, over $6 billion exited US spot Bitcoin ETFs as investors who purchased near the October highs were strained by the plummeting prices. However, these outflows have since decelerated, with Bitcoin's current trading price nearly aligning with the ETF average cost basis around $86,000, a price level that usually serves as strong support after weaker investors have exited.

Despite substantial supply breaking the market, Bitcoin has managed to hold its range, indicating that global buyers are absorbing the outflows from ETFs.

Despite softer US buying activity, indicated by the Coinbase Premium Index, Bitcoin has maintained stability, suggesting that global interest may be counterbalancing domestic selling pressures.

Bitcoin's Ascendance Toward $100,000

Currently, Bitcoin is establishing support within the $88,000 to $92,000 range. The CPI data alleviates a significant macroeconomic concern while both on-chain and ETF metrics show the market has undergone a considerable resetting.

If ETF flows stabilize and purchasing activity in the US picks up, Bitcoin could approach $95,000 in the short term. A further rally towards $100,000 becomes increasingly feasible later this quarter as demand strengthens.

At this point, the recent CPI report reinforces the idea that Bitcoin is in a temporary pause before a potential upward trajectory, rather than signaling the onset of a new bear market.