Dogecoin, XRP Lead Crypto Rebound, Bitcoin Tops $96K as Traders Await Key Inflation Data

What to know:

  • Bitcoin added to overnight gains following soft U.S. PPI data, continuing its bounce from Monday’s selloff.
  • XRP, DOGE led price gains as the altcoin-heavy CoinDesk 20 Index outperformed BTC.
  • Wednesday’s U.S. CPI report and Trump’s inauguration next week are the next catalysts for crypto prices.

On Tuesday, crypto prices rebounded following their significant drop on Monday, with Bitcoin (BTC) reaching a peak of $97,300. Traders are closely monitoring the upcoming release of fresh U.S. inflation figures, with additional data scheduled for tomorrow.

Yesterday, the largest cryptocurrency fell below $90,000 due to reports that Donald Trump is planning initial executive orders favorable to the crypto sector. This dip was rapidly bought up, and the growth persisted today, bolstered by weaker-than-anticipated U.S. Producer Price Index (PPI) figures for December.

As a crypto investor, I just noticed that Bitcoin (BTC) is currently trading at around $96,500, marking a 3% increase over the past 24 hours. Interestingly, the overall market benchmark, CoinDesk 20 Index, performed even better with a 5% growth rate.

In terms of altcoins, Ripple‘s XRP and Dogecoin (DOGE) seem to be the stars of the day, posting impressive gains of approximately 6% and 7%, respectively.

In traditional markets, the tech-heavy Nasdaq and the S&P 500 closed roughly flat.

Looking at the broader picture, Bitcoin continues to hover above $9,000, indicating a sideways trend, despite turbulence caused by rising bond yields and a strengthening US dollar over the last few weeks. Investors have revised their predictions for lower interest rates in the U.S. this year following robust economic data reports from the country.

On Wednesday, the release of the Consumer Price Index (CPI) report might cause more market fluctuations and offer additional insights for traders about the potential direction of the Federal Reserve’s monetary policy throughout the year.

Moving forward, there is speculation that Trump’s inauguration on January 20 might impact financial markets, as investors eagerly await potential pro-cryptocurrency policies from the new administration.

Initially, K33 Research had predicted that the inauguration might offer a chance for some to profit by selling first, given the high anticipation. However, due to the early-year decline in stock and digital asset prices, the company has changed its perspective on this matter.

Although our monthly forecast previously suggested selling Bitcoin at the inauguration, we now find that approach less attractive unless the next six days bring a significant return of momentum. This comes after the S&P 500 closed its post-election gap yesterday and Bitcoin fell to a two-month low.

The authors noted that the process of reducing risk is contingent upon the price trends seen next week, and since we anticipate a positive influence from Trump’s actions on Bitcoin over the long term, this de-risking strategy may prove to be temporary.

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2025-01-15 01:17