Bitcoin surged back above the $100,000 mark on Wednesday, regaining ground after dipping below $90,000 earlier this week for the first time since November. The rally comes on the heels of better-than-expected inflation data and optimism surrounding potential regulatory changes in the crypto industry.

The release of fresh Consumer Price Index (CPI) figures suggested the Federal Reserve might adopt a less aggressive stance on interest rates. Lower rates and Treasury yields often drive investors toward riskier assets, making Bitcoin an attractive choice. The news eased concerns of prolonged high rates, sparking renewed interest in cryptocurrencies.

Adding to the momentum, a Reuters report hinted at imminent changes in the Securities and Exchange Commission's (SEC) approach to crypto regulation. New SEC leadership is reportedly set to provide clearer guidance on whether digital assets qualify as securities, a move long sought by exchanges like Coinbase. These regulatory developments could also involve halting some enforcement actions from the previous administration, signaling a more cooperative future for the crypto space.

The optimism surrounding Bitcoin’s rise follows a period of significant volatility. Earlier in the week, Bitcoin slipped below $90,000, rattling investors. However, the combination of CPI data and a positive regulatory outlook restored confidence in the market.

Outgoing SEC Chair Gary Gensler, in an interview with Yahoo! Finance, emphasized that existing laws can be applied to the crypto industry but criticized exchanges for resisting compliance. This sentiment has underscored the need for clearer rules to guide the industry, which could benefit both regulators and market participants.

As Bitcoin regains its six-figure value, the broader cryptocurrency market is watching closely for further developments. Investors are hopeful that the combination of easing monetary policy and favorable regulatory news will sustain the upward trajectory.