New York, Jan 14, 2026, 10:07 EST — Regular session
- Bitcoin gained roughly 4% during U.S. morning trading, clawing back some losses from its early-January drop.
- Risk appetite got a boost from a softer core inflation reading and renewed efforts in Washington to tighten crypto market regulations.
- Thursday’s Senate debate on the crypto bill and the Fed’s Jan. 27-28 meeting have traders on edge.
Bitcoin climbed 4.4% to $96,384 in early U.S. trading Wednesday, retreating from an intraday peak around $96,729 after dipping to a low of $92,204.
This shift is significant as bitcoin has started behaving like a high-beta risk asset once more. Since rates remain the key driver, even minor changes in inflation narratives can swiftly pull funds into or away from crypto.
U.S. consumer prices increased 0.3% in December and climbed 2.7% compared with the previous year, Labor Department data revealed. Core inflation, excluding food and energy, edged up 0.2% monthly and 2.6% annually. The next CPI update, covering January, is scheduled for release on Feb. 11. 1
President Donald Trump used the inflation report to push for Federal Reserve rate cuts, despite most investors betting the Fed will keep rates unchanged at its upcoming meeting. 2
Washington finally stepped into the policy debate that’s been dogging the crypto industry for years. U.S. senators introduced draft legislation defining when tokens count as securities or commodities, while boosting the Commodity Futures Trading Commission’s authority over spot crypto markets. Summer Mersinger, CEO of the Blockchain Association, flagged a “relentless pressure campaign by the Big Banks” targeting the bill. 3
Flows are already shifting with the mood. U.S. spot bitcoin ETFs — funds that track bitcoin’s price on the stock market — raked in a net $753.8 million Tuesday. Fidelity’s FBTC led the charge, drawing $351.4 million, while BlackRock’s IBIT added $126.3 million, according to data from Farside Investors. 4
Corporate demand remains a key pillar, but it could turn risky if it wanes. Strategy revealed in an SEC filing that it scooped up 13,627 bitcoin between Jan. 5 and 11, spending roughly $1.25 billion and pushing its total stash to 687,410 bitcoin. 5
Other major tokens followed the upward trend Wednesday. Ether climbed 6.7%, reaching around $3,349, and XRP picked up 4.3%, trading near $2.16.
Technicians are eyeing whether bitcoin can sustain its breakout. “Bitcoin is gaining strong momentum,” said Akshat Siddhant, lead quant analyst at Mudrex. He highlighted the $92,000-$94,000 range as a critical zone, aligning with popular moving averages that many traders watch closely. 6
That rally isn’t without its risks. The bill might still be altered or stall, and given bitcoin’s sensitivity to interest rates, any unexpected inflation data or a surge in Treasury yields could quickly reverse the gains.
Bitcoin remains far from its October high near $126,223, following a tough close to 2025 that saw traders eager to lock in gains on any uptick. 7
Mark your calendar for the Fed’s policy meeting on Jan. 27-28. It’s a crucial event for assets tied to rate forecasts — bitcoin included. 8
