- BTC recovered $100,000, albeit briefly, after lower-than-expected inflation data.
- XRP regains seven-year highs and ONDO faces pressure to unlock $2.4 billion of tokens.
On Wednesday Bitcoin (BTC) It bounced and retested $100,000 following weaker-than-expected US inflation data, lifting the overall market. The Consumer Price Index (CPI), an inflation indicator, recorded 3.2% compared to the same period last year, compared to economists’ forecast of 3.3%.
Source: CoinMarketCap
This has eased inflation concerns and the prospect of a rate cut from the Federal Reserve, which had previously depressed markets and pushed BTC below $90,000.
But the market still ”unchanged‘The Federal Reserve interest rate will be decided at its next meeting scheduled for late January.
AI Agents Lead Recovery, XRP Hits New Highs
Following BTC’s rally, Solana (SOL) and Ethereum (ETH) rose 14% and 12%, respectively. However, in the AI agent sector, Virtuals Protocol (VIRTUAL) and Aixbt (AIXBT) showed even greater gains, recording gains of 25% and 35%, respectively.
Other tokens with AI agent narratives such as Fartcoin and Cookie also recorded double-digit gains. In fact, some agent tokens have also recorded triple-digit profits in just one day.
However, the main market highlight was XRP. At press time, the altcoin had hit a record high of $3.38, surpassing its 2021 cycle high in the process. As the SEC files its appeal against Ripple Labs, the altcoin remains unfazed by the legal development, and this feat effectively extended the breakout gain by 40%.
Source: XRP/USDT, TradingView
The agency is unhappy with U.S. District Judge Analisa Torres’ ruling that classified XRP as a non-security and reduced Ripple Labs’ $2 billion fine to $125 million.
The agency appealed despite speculation that it would not appeal. Annoying Ripple’s LeadershipHe called the move a waste of taxpayer money. However, there are reports that the new Trump administration may ‘freeze’ some cryptocurrency lawsuits, including the Ripple case.
Lastly, Ondo (ONDO), the market leader in real asset tokenization (RWA), is set to unlock approximately 800 million tokens (worth $2.4 billion) on January 18th.
This represents 134% of the market capitalization and could expose the token to significant volatility and selling pressure. At press time, despite a broad market recovery, the altcoin is already down 42%. The price has so far not recovered from the December sell-off, at $1.2.
source: CryptoRank
Lastly, next week is the D-day of President Donald Trump’s inauguration, which will open a new chapter for cryptocurrency.
As the market focuses on this historic event, trading firm QCP Capital noted increased interest from options traders in the $100,000-$110,000 price target. company stated,
“On the options side, the BTC JAN currency dominated the market yesterday as traders adopted an increasingly optimistic view, closing contracts at strike prices ranging from $100K to $110K. “This is a promising sign ahead of March, which will have the highest concentration of open interest with the current $120,000 strike.”