(Bloomberg) -- Bitcoin hovered near $100,000 after notching its biggest gain of the new year on reassuring US inflation data that lifted global markets by reviving bets on further Federal Reserve interest-rate cuts.

The digital asset was fluctuated at about $99,300 as of 9:30 a.m. in New York, after earlier breaching the closely-watched threshold, holding on to most of the more than 3% jump sparked by the Bureau of Labor Statistics figures a day earlier. Tokens such XRP and Solana continued to press higher.

The report pointing to cooling core consumer prices reignited bets on another Fed rate reduction by July, boosting stocks and bonds. The spotlight now turns to the policy blitz expected in the wake of President-elect Donald Trump’s inauguration on Jan. 20, potentially including steps to bolster the crypto sector.

Speculators are weighing up the risk of inflationary tariff and immigration policies against Trump’s vow to make the US the global home of digital assets. The Republican has also backed the idea of creating a national Bitcoin stockpile.

One key question is whether the 50% advance in Bitcoin sparked by Trump’s election victory on Nov. 5 — the token hit a record $108,316 last month — will give way to “sell-the-news” profit-taking when he actually assumes power.

In the Bitcoin options market, the pattern of recent trades “reflects a market still not ready to fully commit” to the latest move higher, said Sean McNulty, head of APAC derivatives at liquidity provider FalconX. “Trump’s inauguration has the potential to disappoint the market,” he said.

Cosmo Jiang, portfolio manager at Pantera Capital, said “our understanding is that Trump has a large number of executive orders ready to go soon after inauguration next week, some of which are specifically positive for digital assets. In the short term we could see some sell-the-news, but those who do are missing the forest for the trees.”