SKN | Bitcoin Surges Above $93,000 as Softer Inflation Fuels Expectations of Deeper Rate Cuts

Bitcoin climbed above $93,000 after fresh inflation data reinforced expectations that major central banks—led by the U.S. Federal Reserve—may pursue further interest-rate cuts. The move highlights crypto’s sensitivity to macro signals, as easing financial conditions tend to bolster demand for risk assets and alternative stores of value.

The rally unfolded against a backdrop of cooling price pressures in developed economies, reviving the narrative that digital assets could benefit from a prolonged phase of monetary easing in 2026.

Market Reaction: Macro Data Drives Risk Appetite

Bitcoin rose roughly 4% intraday, extending weekly gains to nearly 7%, while total crypto market capitalization increased by more than $90 billion. Trading volumes across major exchanges jumped about 18% compared with the prior session, signaling renewed participation from both retail and institutional players.

Other large-cap tokens followed, though with more muted moves. Ethereum gained close to 2%, while high-beta altcoins underperformed, reflecting a selective bid rather than broad-based speculation. Derivatives data showed a modest rise in open interest, suggesting positioning remains measured rather than euphoric.

Macro and Policy Signals: Inflation Shifts the Rate Outlook

The catalyst came from inflation figures that undershot expectations, reinforcing market-implied probabilities of additional rate cuts over the coming quarters. In fixed income, U.S. Treasury yields edged lower, with the 10-year slipping toward 4%, a level historically supportive for non-yielding assets like Bitcoin.

For crypto investors, the significance lies less in a single data print and more in the trajectory. Sustained disinflation reduces the opportunity cost of holding Bitcoin, strengthening its appeal as both a macro hedge and a portfolio diversifier amid shifting policy regimes.

Investor Sentiment: Institutions Reassert the Narrative

Flows into spot Bitcoin ETFs turned positive on the session, reversing modest outflows seen earlier in the week. While the inflows were not record-breaking, they signaled that institutional allocators remain responsive to macro-driven catalysts rather than short-term price momentum alone.

Psychologically, the move above $93,000 reopens a level many traders view as a gateway toward prior cycle highs. However, positioning data suggests investors are approaching the rally with caution, mindful that macro optimism can quickly reverse if inflation reaccelerates or policy expectations shift.

Looking ahead, markets will focus on upcoming central bank guidance, labor-market data, and ETF flow consistency to determine whether the rally has structural backing. For crypto investors, the episode underscores how closely Bitcoin remains tethered to global liquidity conditions—and how swiftly macro signals can reshape sentiment across digital asset markets.