Here’s why Bitcoin and altcoins are going up today (Jan. 13)

Bitcoin and altcoins rallied today, January 13, as market participants reflected on the encouraging U.S. consumer inflation data and the progress of the CLARITY Act.

Bitcoin (BTC) rose for the third consecutive day, reaching an intraday high of $93,500. Dash (DASH) jumped by 55%, while Monero (XMR) rose by 20%. Other top gainers included tokens like Story, Internet Computer, Pump, and World Liberty Financial.

Bitcoin and altcoins rally triggered by US inflation data 

One main reason Bitcoin and altcoins rose was that the Bureau of Labor Statistics published an encouraging US inflation report.

Headline Consumer Price Index (CPI) remained at 2.7% in December as the core CPI, which excludes the volatile food and energy products, dropped from 2.7% to 2.6%.

These numbers indicate that Trump’s tariffs have not had a significant impact on inflation. Also, there are signs that inflation will continue moving downwards as gasoline prices and mortgage rates drop. 

Mortgage rates dropped to 6.2%, and the drop will continue falling as Fannie Mae starts buying as part of President Trump’s directive to buy mortgage securities worth $200 billion.

Inflation may also drop, albeit slightly, if the U.S. Supreme Court rules that Trump’s tariffs were illegal on Wednesday, January 14.

Falling inflation and a softening labor market suggest the Federal Reserve may deliver additional interest rate cuts this year. The bank’s dot plot suggested it would cut interest rates this year.

CLARITY Act tailwinds 

The crypto rally is also happening as market participants react to the new Market Structure Bill, which is commonly known as CLARITY Act. 

This bill will simplify U.S. crypto regulations by clarifying the respective roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission. 

The CFTC, which is seen as more friendly, will regulate most coins, while the SEC will regulate issuers and the issuance of digital assets sold as part of an investment contract.

Looking ahead, the bill will go through the markup process in the committee on Thursday, followed by a full Senate vote at a later date  

Bitcoin and altcoins are up as futures open interest rose to over $138 billion and the Crypto Fear and Greed Index moved to 45. The index is showing signs of moving into the greed zone soon, which would be positive for the crypto market.