Canaan Inc. (CAN), a leading provider of high-performance computing solutions for cryptocurrency mining, witnessed a significant 8.06% surge in its stock price during pre-market trading on Wednesday. This rally can be attributed to the broader bullish sentiment sweeping through the cryptocurrency market.

Bitcoin, the world's largest cryptocurrency by market capitalization, climbed closer to the pivotal $99,000 mark, buoyed by the release of the U.S. Consumer Price Index (CPI) data. The report showed persistent inflationary pressures, fueling expectations that the Federal Reserve may continue its policy tightening measures to rein in rising prices. This, in turn, supported Bitcoin's price rise, as investors view the digital asset as a potential hedge against inflation.

Canaan's stock surge mirrored the upswing in other crypto-related stocks, as investors anticipated increased demand for mining hardware and services amidst Bitcoin's resurgence. The company's prospects were further bolstered by optimism surrounding a potentially crypto-friendly regulatory environment under the incoming Trump administration. Speculation is rife that the U.S. may emerge as a global hub for digital assets, fostering innovation and growth in the sector.