Bitcoin and altcoins rose today, January 13, as market participants reflected on encouraging US consumer inflation data and progress on the CLARITY Act.
Summary
- Bitcoin and most altcoins were in the green today, January 13.
- The US published an encouraging report on consumer inflation.
- The Senate Banking Committee has published the text of the CLARITY Act.
Bitcoin (BTC) rose for the third day in a row, hitting an intraday high of $93,500. Dash (DASH) rose 55%, while Monero (XMR) rose 20%. Other big winners included tokens such as Story, Internet Computer, Pump and World Liberty Financial.
Bitcoin and altcoins rise on US inflation data
One of the main reasons why Bitcoin and altcoins rose was because the Bureau of Labor Statistics published an encouraging US inflation report.
The overall consumer price index (CPI) remained at 2.7% in December, while the core CPI, which excludes volatile food and energy products, fell from 2.7% to 2.6%.
These numbers indicate that Trump’s tariffs have not had a significant impact on inflation. There are also signs that inflation will continue to decline as gasoline prices and mortgage rates fall.
Mortgage rates fell to 6.2%, and will continue to fall as Fannie Mae begins buying as part of President Trump’s directive to buy $200 billion worth of mortgage bonds.
Inflation could also fall, albeit slightly, if the US Supreme Court rules on Wednesday, January 14, that Trump’s tariffs are illegal.
Falling inflation and a weakening labor market indicate that the Federal Reserve may make additional interest rate cuts this year. The bank’s dot plot suggested it would cut rates this year.
CLARITY The law is behind us
The crypto rally is also happening as market participants react to the new Market Structure Bill, commonly known as CLARITY Act.
This bill will simplify U.S. crypto regulation by clarifying the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The CFTC, seen as friendlier, will regulate most coins, while the SEC will regulate issuers and the issuance of digital assets sold as part of an investment contract.
Looking ahead, the bill will go through the markup process in committee on Thursday, followed by a full vote in the Senate at a later date.
Bitcoin and altcoins have risen as open interest on futures has risen to over $138 billion and the Crypto Fear and Greed Index has risen to 45. The index is showing signs of entering the greed zone soon, which would be positive for the crypto market.
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