JPMorgan's weak stock performance dragged down bank shares, causing the three major U.S. stock indices to retreat from their highs. Cryptocurrencies surged strongly, with the overall market cap rising over 5% in the past 24 hours. Bitcoin briefly climbed to $96,495 this morning, while Ethereum reclaimed above $3,300. Indicators in the derivatives market are gradually warming up, potentially triggering an accelerated rally after a breakthrough.

CPI Below Expectations, JPMorgan Drags Down Bank Stocks

U.S. consumer price index came in below expectations. The December CPI report showed core CPI (excluding food and energy) rising 0.2% month-over-month and 2.6% year-over-year, below economists' estimates of 0.3% and 2.8%. This further reinforced bond traders' expectations that the Federal Reserve will wait until mid-year to cut rates. Even though Fed Chair Jerome Powell has already cut rates three times last year, money markets still predict the next rate cut won't occur until mid-2026.

Despite JPMorgan's fourth-quarter revenue and profits exceeding expectations, its stock still fell 4.2%. The CFO hinted that the banking industry may oppose President Trump's proposal last Friday evening to cap credit card interest rates at 10%.

Influenced by U.S. President Trump's intensified rhetoric against Iran, Brent crude oil posted its largest four-day gain since June; silver also extended its recent rally, marking its best three-day streak on record. Japan may hold an early election, keeping the yen near an 18-month low against the dollar.

Bitcoin Surges Above 95K, Ethereum Reclaims Above $3,300

Cryptocurrencies surged strongly, with the overall market cap rising over 5% in the past 24 hours. The U.S. Senate Agriculture Committee has rescheduled the hearing for the cryptocurrency market structure bill to January 27, after multiple previous delays, signaling an acceleration in the legislative process.

Bitcoin briefly rose to $96,495 this morning, while Ethereum reclaimed above $3,300.

Indicators in the derivatives market are gradually warming up. According to Deribit data, open interest in Bitcoin options has increased, with buyers outnumbering sellers. After breaking through 95K, market makers' Gamma exposure has flipped to Short Gamma, potentially triggering an accelerated rally after the breakthrough.

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