Bitcoin Eyes $100K as Inflation Cools and Congress Backs Crypto Bill

• Bitcoin holds above $92,000 as US core inflation drops to 2.6% and the CLARITY Act advances in Congress.
• BTC trades steady at $92,000 following softer inflation data and progress on crypto regulation legislation.
• Bitcoin maintains $92,000 support amid cooling inflation and congressional movement on the CLARITY Act.

Bitcoin maintained its position above the $92,000 threshold on Tuesday as traders processed encouraging inflation data and monitored legislative progress on digital asset regulation. The cryptocurrency extended its winning streak to three sessions while forming a technical pattern that suggests further upside potential.

Inflation Data Supports Risk Assets

The December Consumer Price Index report showed core inflation easing to 2.6% year-over-year, down from 2.7% in November. The figure matched economist expectations and reinforced signs that price pressures continue to moderate.

The monthly core CPI slowed to 0.2% from 0.3% in the previous month, indicating a cooling trend in underlying inflation. The headline inflation rate remained steady at 2.7% annually, indicating that recent tariff implementations have not yet had a significant impact on consumer prices.

Energy costs have declined sharply in recent weeks, with gasoline prices reaching multi-year lows. Mortgage rates have also retreated from their peaks. The administration has announced initiatives aimed at housing affordability, including plans to acquire $200 billion in mortgages and proposals to limit credit card interest rates.

The softening inflation environment could influence Federal Reserve policy decisions. While officials have indicated one rate cut in 2025, improving economic conditions may create room for additional monetary easing. Lower interest rates typically benefit risk assets, such as cryptocurrencies, by reducing the opportunity cost of holding non-yielding investments.

CLARITY Act Moves Forward in Congress

Legislative momentum for cryptocurrency regulation accelerated as lawmakers released the full text of the CLARITY Act ahead of Thursday’s markup session. The proposed legislation aims to establish clearer regulatory boundaries between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Under the bill, the CFTC would assume expanded oversight responsibilities for digital asset markets. The SEC’s jurisdiction would be more narrowly defined. The markup process will allow committee members to propose amendments before the bill advances to a full House vote.

Market observers view the legislation as potentially positive for the sector. Clear regulatory frameworks could reduce uncertainty and encourage institutional participation in cryptocurrency markets.

Chart analysis reveals Bitcoin has formed an ascending triangle pattern, characterized by a horizontal resistance line and an upward-sloping support trend. This formation typically precedes bullish price movements.

The cryptocurrency has crossed above its 50-day exponential moving average, a signal often interpreted as a shift in momentum favoring buyers. The Supertrend indicator approaches a transition from bearish to bullish territory.

Technical analysts identify $100,000 as the next significant resistance level. This target aligns with key Murrey Math Lines pivot points. However, a breakdown below the ascending support line would negate the bullish scenario and potentially trigger further declines.