‘Why is crypto, Bitcoin up today?’: Traders see major breakout amid rate cut hopes

Crypto prices surged Tuesday: Bitcoin up 5%, Ethereum jumped 7.5%, while XRP, BNB, Solana and Dogecoin gained 5–10% in a broad rally.

Updated on: Jan 14, 2026, 05:12:07 IST

By Shamik Banerjee

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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.

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.

ABOUT THE AUTHOR
Shamik Banerjee
Shamik is a journalist covering the United States for Hindustan Times. He has more than four years of experience reporting on US politics, sports, and major breaking stories across fast-moving cycles. He previously worked at Times Now and Sportskeeda, building strong newsroom instincts and digital storytelling skills. At HT.com, he focuses on day-to-day coverage of US political developments while also handling high-impact stories that demand speed, accuracy, clarity, and context under pressure. Shamik has extensive experience covering NFL game days over the past two years, coordinating live updates, analysis, and explainers. He is particularly drawn to large news moments such as US elections and the Super Bowl, where he thrives at the news desk working alongside the team. He holds degrees in Media Studies from Jamia Millia Islamia and English Literature from Jadavpur University. Before entering journalism, he briefly worked in digital marketing and political consultancy roles. Currently a Senior Content Producer at HT Digital, he is driven by curiosity, discipline, and a constant desire to explore new and obscure topics. Outside work, he enjoys reading, films, sports, and learning continuously.Read More

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