Jonathan Ra | norphoto | Getty Images
Bitcoin The interest rate index rebounded on Tuesday, rising along with other risk assets as traders digested a mild inflation reading.
On Tuesday, the price of the major cryptocurrency rose 4% to $96,781.15, according to Coin Metrics, after falling below the $90,000 support level at the start of the week. The broader cryptocurrency market, as measured by CoinDesk 20 The index rose 3.9%.
Bitcoin is rebounding from its recent decline
shares Coinbase and Accurate strategy They rose more than 3% and 5%, respectively. Mining stocks Mara Holding and Basic scientific It increased by about 5%.
This step comes as reported by the Bureau of Labor Statistics Cooler than expected swell Tuesday. The Producer Price Index, which measures wholesale inflation, rose just 0.2% in December, while economists polled by Dow Jones expected it to rise 0.4%.
Cryptocurrency prices are Stuck in a tug of war Between investor concerns about rising inflation under the incoming administration of Donald Trump and optimism about the president-elect's leadership of crypto professionals, which could meaningfully support the industry this year. As a result, traders are anticipating a more volatile January than expected, which could extend over the entire quarter.
Bitcoin fell last week after stronger-than-expected payroll numbers caused bond yields to rise, prompting investors to unload risky, growth-oriented assets. Headlines about Trump's tariff plans also spooked investors, giving a boost to the dollar, which has an inverse relationship with bitcoin.
Tom Lee of Fundstrat told CNBC “squawk box” Monday that Bitcoin It can be corrected to $70,000 Before breaking new records and eventually ending the year with between $200,000 and $250,000. Cryptocurrency traders are accustomed to sharp drawdowns in Bitcoin during a bull market.
Bitcoin is down 10% from the record high set on December 17. It will rise by 3% in 2025.
