Bitcoin saw a strong rebound on Wednesday, reaching $98,800, up by 2% after the US Labour Department released the Consumer Price Index (CPI) data for December. The CPI showed a 2.9% increase, which was in line with expectations. The Core CPI, excluding volatile items like food and energy, came in slightly under expectations at 3.2%. This data eased fears of severe inflation, bolstering investor confidence and supporting the bullish outlook for Bitcoin.

Crypto prices, including Ethereum which surged by 2.08% to $3,275, have been recovering in the last few trading sessions. The global crypto market cap rose 2.5%, reaching $3.37 trillion. Other major altcoins saw significant gains as well, including XRP (up 10.25%), BNB (up 1.3%), Solana (up 1.5%), and Dogecoin (up 4.6%).

A report from K33 this week suggests that former US President Trump’s anticipated expansionary policies and favorable crypto regulations could further support the crypto market. Analysts believe that moderating inflation and potential Bitcoin reserve initiatives could drive Bitcoin’s price even higher.

Raj Karkara, COO of ZebPay, emphasized the need for tax reform, particularly in relation to the 30% crypto income tax and the one percent tax deducted at source (TDS). He advocates for a simplified tax structure to encourage more participation in the market, along with clearer regulatory frameworks to foster growth and stability in the crypto industry.