Bitcoin Price Nears Two-Month High as Softer US Inflation Lifts Crypto Sentiment

Bitcoin's price rose on Wednesday as the cryptocurrency market strengthened following softer US inflation data that improved risk appetite. The largest cryptocurrency in the world was trading at about $95,000 (about Rs. 85.6 lakh), building on recent gains as investors reacted favourably to declining price pressure and escalating geopolitical tensions that raised demand for alternative assets. Ethereum (ETH) traded near $3,300 (roughly Rs. 2.9 lakh), extending its rally as broader sentiment improved across risk assets. Bitcoin is priced near Rs. 83.2 lakh in India, while Ethereum trades around Rs. 2.9 lakh, as per the Gadgets 360 price tracker.

As traders processed softer inflation data and monitored developments in international geopolitics, market sentiment improved. Reduced price pressure has supported cryptocurrency markets by raising expectations of looser financial conditions. At the same time, on-chain data points to short-term investors returning to profit, which has eased near-term selling pressure. However, participants remain alert to key technical levels, with sustained closes above the $92,000–$94,000 zone (roughly Rs. 83.02 lakh–Rs. 84.83 lakh) seen as crucial for maintaining momentum.

Bitcoin Holds Near Two-Month High as Softer Inflation Lifts Crypto

Altcoins traded mixed as liquidity continued to concentrate at the top of the market. XRP traded near $2.15 (roughly Rs. 194), while Solana (SOL) was priced around $144.65 (roughly Rs. 13,060). Binance Coin (BNB) hovered near $940 (roughly Rs. 84,950), and Dogecoin (DOGE) traded close to $0.15 (roughly Rs. 13.3).

Avinash Shekhar, Co-Founder and CEO of Pi42, highlighted the improving market structure and strengthening investor confidence, saying, “Following an extended period of muted activity and cautious positioning, early January is seeing buyers regain confidence, with Bitcoin setting the pace. The recent upswing has been driven by steady spot demand and the unwinding of bearish bets, yet prices are holding firm instead of showing sharp pullbacks. That kind of behaviour usually points to strengthening belief rather than short-term speculation.”

Sharing his near-term outlook on Bitcoin's momentum, Akshat Siddhant, Lead Quant Analyst at Mudrex, said, “Bitcoin is trading with renewed strength around the $95,500 level (roughly Rs. 86.18 lakh), following softer US inflation data that has improved risk appetite. Ongoing geopolitical tensions have further increased demand for alternative assets, adding support to the crypto market.”

On broader market trends and the fragmented performance seen across altcoins, Nischal Shetty, Founder of WazirX, said, “Altcoins remain mixed as Bitcoin holds steady amid heightened macro volatility. With BTC benefiting from dollar weakness and safe-haven flows, liquidity has continued to concentrate at the top of the market, leaving altcoins more sensitive to short-term flows and headline risk [...] Until macro volatility eases or liquidity broadens beyond Bitcoin and Ethereum, altcoins are likely to see choppier moves, exaggerated reactions to news, and short-lived rallies rather than sustained breakouts.”

Overall, analysts said crypto markets are showing improving strength as softer inflation, rising geopolitical risks, and supportive on-chain signals help lift sentiment. Bitcoin's ability to hold above key technical zones and Ethereum's continued outperformance remain central to near-term market direction. At the same time, altcoins are expected to remain volatile until liquidity improves and macroeconomic uncertainty subsides.