19th January 2026 – (New York) Bitcoin rallied to its strongest level in two months on Wednesday, spearheading a broad upswing across digital assets amid growing expectations of interest‑rate cuts later this year and signs of fresh momentum behind crypto‑friendly legislation in Washington.
By midweek, the flagship cryptocurrency was up 3.5% on the day at roughly $96,755, extending its rebound to more than 8% from Saturday’s trough of $90,383. The move put Bitcoin at its highest since November, when it last topped $100,000. Altcoins advanced in tandem over the past 24 hours, with Ethereum gaining 4.6%, XRP 1.6%, Solana 2.2% and Dogecoin 3.1%. Shares in Coinbase also climbed, briefly up 4% before easing to a 0.6% rise, adding to Tuesday’s 4% gain.
Total crypto market capitalisation swelled by about $161 billion between Saturday and Wednesday, according to CoinGecko, rising from $3.17 trillion to $3.3 trillion.
Traders cited a combination of softer inflation figures and a mixed labour report as catalysts for revived bets that the Federal Reserve could start trimming rates in the coming months. Lower borrowing costs have historically buoyed risk assets, including crypto: Bitcoin surged from around $5,000 in March 2020 to near $69,000 by November 2021 as policy eased, while a tightening cycle in 2018 coincided with a slide from about $20,000 to roughly $3,000.
Market pricing currently implies only a 5% chance of a cut this month, but the odds build later in the year, with probability markers at 26% for March, 34.7% for April and 47.5% for June. There is also a 20.8% chance of a 50‑basis‑point reduction that would take rates to 3%-3.25%, based on CME’s FedWatch tool.
Sentiment was also buoyed by legislative movement on Capitol Hill. The Senate is edging towards consideration of the Clarity Act, a bill intended to delineate which digital assets fall under the Securities and Exchange Commission versus the Commodity Futures Trading Commission. The Senate Banking Committee said it plans to take up mark‑ups this week. The renewed push echoes last year’s “crypto week”, when Bitcoin vaulted above $120,000 as House Republicans and the Trump administration championed the Clarity Act and other supportive measures.
Policy shifts have often acted as tailwinds for the sector. In a prior burst of institutional enthusiasm, Bitcoin broke through $110,000 and $120,000 in quick succession, aided by greater corporate participation, including a proposed $2.5 billion plan by Trump Media and Technology Group to build a corporate Bitcoin reserve. The US government has also accumulated digital assets, with its holdings reportedly reaching $20 billion by August 2025, though Treasury Secretary Scott Bessent said no further Bitcoin purchases were planned.
