Bitcoin Surges to $112,000 Following Mild U.S. Inflation Report, Stocks Hit New Highs
Bitcoin (BTC) briefly surged past $112,000 on Friday, marking a new milestone as investors reacted positively to a softer-than-expected U.S. Consumer Price Index (CPI) report. The data signaled easing inflation pressure, boosting both digital assets and traditional markets, with major stock indexes also closing at record highs.
According to market data, Bitcoin climbed nearly 6% within hours of the CPI release before stabilizing around the $110,000 level. Analysts said the move reflects growing investor confidence that the Federal Reserve may maintain an accommodative monetary stance into 2026, keeping risk assets attractive.
“Lower inflation numbers always support speculative assets like Bitcoin,” said one analyst. “Investors are positioning ahead of potential rate cuts, and crypto is once again showing its sensitivity to macroeconomic signals.”
Ethereum (ETH) also gained nearly 4%, trading above $3,200, while other leading cryptocurrencies such as Solana (SOL) and BNB saw moderate increases. The overall crypto market capitalization rose by more than $150 billion in 24 hours, underscoring renewed market optimism.
Meanwhile, U.S. equities also benefited from the softer CPI data. The S&P 500 and Nasdaq Composite both hit new record highs, reflecting broader risk-on sentiment across global markets.
U.S. Companies’ Bitcoin Holdings Near 1 Million BTC, Valued at $115 Billion
At press time, Bitcoin remains up over 50% year-to-date, driven by strong institutional demand, optimism around exchange-traded funds (ETFs), and growing adoption of on-chain financial products.
Market observers believe Bitcoin’s rally could extend if inflation continues to cool and the Fed signals rate cuts early next year. However, analysts also warned of potential short-term volatility as traders take profits near the all-time highs.
Key Technical Levels to Watch
According to Cubic Analytics founder Caleb Franzen, Bitcoin is currently rebounding from its 200-day Exponential Moving Average (EMA) — a crucial long-term support level. However, he noted that for a clear trend reversal, Bitcoin needs to reclaim and close above its 21-day and 55-day EMAs, which have acted as short-term resistance in recent sessions.
“Bitcoin is holding the 200-day EMA for now,” Franzen wrote on X (formerly Twitter), “but it must break and close above the 21-day and 55-day levels that capped its gains earlier this week.”
At present, $112,000 remains a key resistance level, while the $110,000–$109,000 range is expected to provide strong support if prices pull back. These zones will likely guide Bitcoin’s next major move in the coming days.
