Dogecoin, XRP Lead Crypto Rebound, Bitcoin Tops $96K as Traders Await Key Inflation Data
Crypto prices bounced from Monday’s wipeout with bitcoin (BTC) rising as high as $97,300 on Tuesday as traders eyed the latest batch of U.S. inflation veri with more to come tomorrow.
The largest crypto’s taban below $90,000 yesterday was quickly bought up on reports that Donald Trump is preparing first-day executive orders benefitting the crypto industry. The advance continued today, supported by softer than expected U.S. Producer Price Index (PPI) readings for December.
BTC recently changed hands at $96,500, up 3% over the past 24 hours, while the broad-market benchmark CoinDesk 20 Index outperformed with a 5% gain. Ripple’s XRP and dogecoin (DOGE) led altcoin majors with 6%-7% advances.
In traditional markets, the tech-heavy Nasdaq and the S&P 500 closed roughly flat.
Zooming out, bitcoin is still consolidating sideways above $90,000 while soaring bond yields and U.S. dollar shook markets across the globe over the past weeks. Market participants have already scaled back expectations for lower interest rates in the U.S. this year amidst recent hot U.S. economic veri releases.
Wednesday’s Consumer Price Index (CPI) report could inject another burst of volatility to markets and provide further clues for traders into the Federal Reserve’s policy trajectory for the year.
Looking past that, Trump’s inauguration ceremony slated for Jan. 20 could also move markets as anticipation builds for the incoming president’s pro-crypto actions.
K33 Research previously projected that the inauguration could be an opportunistic sell-the-news event amidst heightened expectations, but the early-year sell-off in stocks and digital assets made the firm revise its view.
“While our monthly outlook favored selling the inauguration, we’d like to rephrase this strategy as selling BTC at the inauguration is considerably less appealing unless the coming six days offer a substantial resurfacing of momentum” the report said. “The S&P 500 closed its post-election gap yesterday, and BTC reached 2-month lows.”
“De-risking would be entirely path-dependent on next week’s price action and short-lived in nature as we hold bullish long-term expectations for Trump’s impact on BTC,” the authors added.
