Bitcoin price today: retreats to $97k after recent macro-driven rally

Bitcoin gave up some ground after its recent rally took it near the critical $100,000 level, buoyed by broad market optimism after softer U.S. inflation data.

Bitcoin retreated 2% to $97,641.0 by 10:05 ET (15:05 GMT). 

The token has rebounded sharply this week, rising to a session high of $100,499.8 on Wednesday. Bitcoin returns near $100k ahead of Trump’s inauguration

In the lead-up to President-elect Donald Trump's inauguration on January 20, Bitcoin has experienced a significant surge, recently reaching a record high of $108,244. 

This upward trajectory is largely attributed to the anticipation of crypto-friendly policies under the incoming administration. 

Trump's campaign promises, including the potential creation of a strategic national Bitcoin reserve and the appointment of cryptocurrency advocates to key regulatory positions, have bolstered investor confidence in the digital asset.

The appointment of Paul Atkins, a known crypto advocate, as the prospective chair of the Securities and Exchange Commission (SEC) is particularly noteworthy. 

Atkins is expected to implement a more accommodating regulatory framework for digital assets, contrasting with the stringent policies of his predecessor.

Republican officials at SEC are expected to start revising the agency's cryptocurrency policies, possibly as soon as next week when Trump assumes office, Reuters reported on Wednesday citing sources familiar with the matter.

Several cryptocurrency analysts maintain a bullish outlook on Bitcoin's price trajectory, forecasting significant growth this year. Crypto price today: altcoins largely up; XRP, LTC see double-digit gains

In the broader cryptocurrency market, most altcoins outperformed Bitcoin, reflecting an increased risk-on sentiment. 

This comes after Wednesday’s U.S. consumer price index (CPI) data, which showed that inflation in December grew largely in line with expectations, while core CPI was softer than expected.

A softer inflation report led to a wider upbeat mood, allaying liquidity concerns.

World no.2 crypto Ether  fell around 2% to $3,288.41

World no.3 crypto XRP  soared 14% to $3.26.

Solana  jumped 6.4%, and Polygon  traded flat, while Cardano  climbed 2.2%. Among meme tokens, Dogecoin  gained 2.3%.

Alongside XRP, another standout performer in the past 24 hours was Litecoin , which surged 11% amid growing optimism over the possible approval of an LTC-focused exchange-traded fund (ETF). The coin hit $116.85, the highest level in a month. 

The rally comes after Canary Capital amended its S-1 registration form with the U.S. Securities and Exchange Commission (SEC) on January 15. Analysts view the amendment as a significant step toward engaging with regulators.

Such filings often suggest that feedback has been received from regulators, with the updates potentially offering insights into the review process.

If approved, the proposed ETF would make Litecoin the third cryptocurrency, alongside Bitcoin and Ethereum , to secure a U.S.-approved spot ETF.

Ayushman Ojha contributed to the report. 

Source: Investing.com