Crypto prices rebounded after Monday’s wipeout, with bitcoin (BTC) hitting $97,300 on Tuesday as traders watched the latest batch of US inflation data and more to come tomorrow.
Crypto’s biggest drop below $90,000 yesterday was quickly overtaken by reports that Donald Trump is preparing day one executive orders to benefit the crypto industry. The advance continued today, supported by weaker-than-expected US producer price index (PPI) figures for December.
BTC recently changed hands at $96,500, up 3% in the past 24 hours, while the market benchmark CoinDesk 20 outperformed with a 5% gain. Ripple’s XRP and dogecoin (DOGE) led the altcoin majors with gains of 6-7%.
In traditional markets, the tech-heavy Nasdaq and S&P 500 closed roughly flat.
Zooming out, bitcoin continues to consolidate sideways above $90,000 as surging bond yields and the US dollar have rocked markets around the world in recent weeks. Market participants have already lowered their expectations for a cut in US interest rates this year, amid recent releases of very encouraging US economic data.
Wednesday’s Consumer Price Index (CPI) report could inject another burst of volatility into markets and provide additional clues to traders about the Federal Reserve’s policy trajectory for the year.
Beyond that, Trump’s inauguration ceremony scheduled for January 20 could also move markets as anticipation of the new president’s pro-crypto actions builds.
K33 Research had previously predicted that the inauguration could be an opportunistic news-selling event amid heightened expectations, but the sell-off in stocks and digital assets earlier this year caused the company to reconsider. of view.
“While our monthly outlook is favorable for inauguration selling, we would like to restate this strategy, as selling BTC on inauguration is considerably less attractive unless the next six days offer a substantial overhaul of the inauguration. ‘momentum,’ the report said. “The S&P 500 closed its post-election gap yesterday and BTC hit a 2-month low.”
“The reduction in risk would depend entirely on next week’s price action and would be short-lived, as we have long-term bullish expectations for Trump’s impact on BTC,” the authors added.
