Bitcoin continues to rally following a better-than-expected CPI report on Tuesday, passing $96,000 Wednesday morning, its highest level in three months.

Bitcoin ETFs are also in the green, recording $753.7 million in inflows on Tuesday, the largest since October 7, according to SoSoValue. The Fidelity Wise Origin Bitcoin Fund took the lion’s share, with $351.3 million in inflows, followed by the Bitwise Bitcoin ETF, with $159.4 million.

Reflecting the renewed optimism, CoinMarketCap’s Fear and Greed Index stands at 52 (neutral), its highest level since the crypto crash on October 10 that triggered $19.1 billion in crypto liquidations.

Concerns remain around the trajectory of the administration’s probe into Fed Chair Jerome Powell, which could affect bitcoin.

“For the crypto market, the core macro variables remain the duration of elevated interest rates and the credibility of policy institutions,” Dean Chen, an analyst at Bitunix, said.

Chen noted that in the short term, the $91,031 level is a key support to monitor, with $97,237 acting as the primary resistance zone.

“If concerns over central bank independence continue to widen — driving volatility in the dollar and real yields — crypto asset volatility is likely to increase,” he added.

On the other hand, if markets regain confidence that the policy path is not being politically distorted, bitcoin may reenter a bullish rhythm following a period of structural consolidation, he said.

“Crypto markets should remain highly attentive to how shifts in the macro narrative cascade into changes in overall risk appetite,” Chen said.

Bitget Wallet research analyst Lacie Zhang said that the recent stabilization in bitcoin suggests the market is rebuilding conviction rather than chasing short-term momentum.

Zhang said the near-term outlook over the next three to five months points to bitcoin advancing toward the $120,000 range as sentiment and inflows improve.

Over a longer horizon into year-end, bitcoin could move toward $180,000, reflecting a market increasingly driven by structural demand rather than episodic speculation, Zhang said.