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Bitcoin continued its rebound on Wednesday, hovering just below $100,000, as another encouraging inflation report stoked investor risk appetite.
The price of the flagship cryptocurrency was last up more than 2% at $99,034.55, bringing its two-day gain to about 7%, according to Coin Metrics.
The CoinDesk 20 index, which measures the broader cryptocurrency market, rose 5%.
Bitcoin approaches $100,000 after CPI data released on Wednesday
shares Coin library up 6%. Bitcoin proxy micro strategy and Mara Holdings Each rose about 5%.
The December consumer price index released on Wednesday showed that core inflation unexpectedly slowed in December. A day earlier, markets again saw PPI inflation data showing wholesale prices rose less than expected in December.
The post-election cryptocurrency rally fizzled out in late 2024 after Federal Reserve Chairman Powell issued an inflation warning on Dec. 18, and last week, Bitcoin suffered more serious losses. On Monday this week, Bitcoin briefly fell below $90,000.
The price of Bitcoin has been influenced by the stock market in recent weeks, in part due to the popularity of Bitcoin ETFs, which have led to the institutionalization of the asset. Bitcoin’s correlation with the S&P 500 has increased over the past week, while its correlation with gold has fallen sharply since late December.
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