Last night, the crypto world experienced an unprecedented wave of volatility. BTC suddenly broke through the key resistance level of $94,500 in the early hours, reaching a high of $96,495, marking the highest point in nearly two months. The futures market was even more lively, with 24-hour liquidation amounts soaring to $680 million, with short positions under the most pressure, suffering losses of $594 million. Many short sellers were probably awakened by margin calls in the early morning.

The backend was immediately asked about the explosion: "Is this the true start of a bull market, or just another trap to lure traders in?" "Why is it so sudden? What exactly happened?"

In fact, this surge was not without reason. The core logic points to a key data point—the US December CPI just released. How significant is this data for the market? The overall CPI year-over-year increase is 2.7%, and core CPI is 2.6%, both meeting or slightly below expectations. Although still far from the Federal Reserve’s 2% target, it at least indicates that inflation is not worsening, which is a "positive amid bad news."

What’s even more noteworthy is the latest signal from the CME FedWatch Tool. The market generally expects the Federal Reserve to keep interest rates unchanged at the January meeting, with room for rate cuts this year. For crypto assets, such shifts in expectations often serve as catalysts for rebounds—once easing expectations are established, risk assets tend to recover.