Bitcoin price jumped above $95,000 on Wednesday after new US inflation data came in lower than expected. BTC rose more than 4% in 24 hours, while Ethereum, Solana, and Cardano posted gains close to 8%. The move follows a familiar pattern: when inflation cools and interest rate pressure eases, investors rush back into riskier assets like crypto.
FIND: Top Ethereum Meme coins to buy in 2026
Why Did Bitcoin Suddenly Jump Over $95K?
Inflation is the rate at which prices rise. When it decreases, borrowing decreases, and investors feel more comfortable taking risks. That’s exactly what happened after the latest US inflation report.
Bond yields fell, the dollar weakened, and cash began looking for a new home. Bitcoin tends to benefit from this setup because many investors see it as a hedge against central bank uncertainty. Mild inflation and global tensions have repeatedly depressed demand for Bitcoin as a non-governmental asset.
Core CPI at 2.6% marks lowest US inflation reading since March 2021
Trump pressures Fed Chair Jerome Powell to cut rates, markets bet until June
December report 🅱️beats expectations as inflation stands at 2.7%
95% chance the Fed will hold rates this month pic.twitter.com/IbXhwF1huk
– Boi Agent One (@boiagentone) January 13, 2026
Altcoins followed quickly. Ether pushed to $3,300, while Solana and Cardano jumped around 9%. This reflects a renewed appetite for risk, not just a rise in one coin.
What Does This Rally Mean for New Crypto Investors?
Basically, the momentum is back, but the risk is the same. When prices are so fast, traders using borrowed money are liquidated first.
(Source: Bitcoin Open Interest / Coinalyze)
More than $688 million in crypto futures positions disappeared in one day as prices rose. About $603 million came from traders betting on the market. Futures are contracts that allow traders to exercise leverage, meaning they borrow money to maximize profits. If the price goes in the wrong direction, the losses hit hard and fast.
For starters, this is important because sharp rallies tend to attract emotional buying. Chasing green candles usually ends badly. If you’re new, focus on buying locally. That means buying real coins without getting power.
FIND OUT: Top 20 Cryptos to Buy in 2026
Increased Volatility Is The Hidden Cost Of Faster Profits
(Source: Bitcoin ETFs had $753.8 million yesterday, the most since October 10 / Coinglass)
Bitcoin is now approaching the price levels that caused the heavy sell-off in early January. At the same time, derivative data shows a rapid rebuilding of profits. This combo often leads to uncontrollable price swings.
Think of height as stacking dominoes. It looks stable until one small push crashes everything. If Bitcoin sells close to $95K, a reversal can reverse the direction very soon.
Traditional markets ensure a risk-free environment. Asian stocks rose sharply, and gold settled near record highs. That alignment is important because Bitcoin now trades like a major asset. Bitcoin’s correlation with traditional markets continues to rise, especially amid macroeconomic-driven moves.
(Source: BTCUSD / TradingView)
Safety Check: How To Approach This Rally Without Getting Burned
If this rally has attention, you may slow down. Quick steps reward patience, not haste.
If you are thinking of buying near high markets, keep your position sizes small, avoid using leverage unless you are very experienced, and make sure you have a clear plan in place before entering a trade, including where you will exit and how much risk you are willing to take.
Ethereum’s rise to $3,300 shows how quickly sentiment can turn. We’ve covered this setup in our breakdown of the recent Ethereum price rally and why resistance is important.
If inflation remains calm and devaluation remains on track, the crypto momentum could hold. Just remember: when appetite returns, flexibility always follows.
FIND: Top Solana Meme coins to buy in 2026
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