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Bitcoin It rebounded on Tuesday, rising alongside other risk assets as traders digested mild inflation data.
The price of the flagship cryptocurrency rose 4.5% to $97,044.35 on Tuesday after falling below the $90,000 support level at the start of the week, according to Coin Metrics. The broader cryptocurrency market, as measured by the CoinDesk 20 index, rose 3.9%.
Bitcoin bounces back from recent slide
shares Coin library and micro strategy The increases were more than 3% and 5% respectively. Mining stocks Mara Holdings and core science It’s up about 5%.
The move comes as inflation data released by the U.S. Bureau of Labor Statistics on Tuesday came in lower than expected. The Producer Price Index, which measures wholesale inflation, rose just 0.2% in December, while economists polled by Dow Jones expected a 0.4% rise.
Cryptocurrency prices are locked in a tug-of-war, with investors concerned about rising inflation under Donald Trump’s incoming administration and optimism about the president-elect’s pro-crypto leadership, which could Generate meaningful support for the industry this year. As a result, traders expect volatility to be higher than expected in January and likely to continue throughout the quarter.
Bitcoin tumbled last week after stronger-than-expected employment data sent bond yields soaring, prompting investors to sell off growth-risk assets. Headlines about Trump’s tariff plans also spooked investors, boosting the U.S. dollar, which has an inverse relationship with Bitcoin.
Fundstrat’s Tom Lee told CNBC’s “Squawk Box” on Monday that Bitcoin could correct back to $70,000 before breaking a new record and eventually reaching between $200,000 and $250,000 by the end of the year. Cryptocurrency traders are used to seeing Bitcoin drop significantly during bull markets.
Bitcoin is down 10% from its December 17 record. It will grow by 3% in 2025.
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