Bitcoin finished the week strong, briefly surging above $105,000 per coin just before Donald Trump—who cast himself as a crypto-friendly candidate in the presidential race—gets inaugurated for his second term on Monday.

It started off the week sluggish, however, selling at a two-month low—below $90,000—as traders were cautious over what the Federal Reserve plans for interest rates this year. 

But new data dropped Wednesday showing that inflation indeed was up at the end of last year, with the Consumer Price Index up 2.9% in the 12 months through December. That, according to traders, made another Fed rate cut seem more likely.

Bitcoin tends to do well in a low interest rate environment—or has done in the past—so if the Fed sees more reason to lower the borrowing costs, then Bitcoin could become more attractive. The asset then broke past $99,000 before continuing on to retake the $100,000 milestone and continue flying.

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Author: Mathew Di Salvo