Cryptocurrency traders on Tuesday (January 13) saw a massive breakout on the charts, with prices of all major currencies, including Bitcoin, giving a rally.
Bitcoin, one of the most widely traded cryptocurrencies, saw a 5.03% gain on daily trade, as of Tuesday afternoon. Ethereum, meanwhile, saw a 7.52% jump in daily trade. XRP is trading at over 6% from the opening prices. BNB, Solana, and even Dogecoin showed between 5-10% jump.
The rally sparked reactions online with traders and investors wondering what is happening crypto prices.
“WHAT THE F*CK IS GOING ON WITH BITCOIN???” one user wrote.
“The crypto market is warming up, buckle up ,BE SAFE, we're so back!” wrote another.
Why Is Crypto Up Today? Here's What We Know
The rally in crypto prices comes amid the recent inflation data release, which has come lower than expected. The inflation data boosted expectations in the market that this would lead to interest rate cuts later this year, especially as Jerome Powell's tenure as the Fed Chair ends.
{{/usCountry}}The rally in crypto prices comes amid the recent inflation data release, which has come lower than expected. The inflation data boosted expectations in the market that this would lead to interest rate cuts later this year, especially as Jerome Powell's tenure as the Fed Chair ends.
{{/usCountry}}Annual inflation (CPI) held at 2.7% year-over-year in December 2025, the US Federal Reserve revealed on Tuesday (January 13). Though it remains above the Fed's target, it showed that price growth is being contained, despite the impact of the tariffs. The low inflation data has contributed to the optimism in the market that a rate cut from the US Fed might be in the offing, soon.
Also read: Jerome Powell vs Donald Trump as Justice Department opens probe on Fed
Senate Proposes CLARITY Act Draft
Additionally, the pump was also likely due to the US Senate Banking Committee publishing the draft of the Digital Asset Market Clarity (CLARITY) Act on Tuesday. The 278-page bill proposes a "lane system" for digital asset classification, dividing jurisdiction between the SEC (for investment-like tokens) and CFTC. It also mandates extensive issuer disclosures akin to public companies.