Bitcoin Recovers $97K Boosted by US Inflation Data
- Bitcoin Recovers $97K on Lower Inflation
- US economic data renews interest in crypto assets
- Resistance at $97.328 limits Bitcoin’s advance
Bitcoin saw a significant 4,5% surge to $97.044 after a period of declines that saw his price below $90.000. This move was driven by economic data released in the United States, which showed a slowdown in inflation, renewing investor appetite for risk assets, including cryptocurrencies.
JUST IN: # Bitcoin back above $97,000 💥
https://t.co/4tdmQP0wa2- Bitcoin Magazine (@BitcoinMagazine) January 14, 2025
The figures showed an increase of just 0,2% in the producer price index (PPI) in December, below analysts’ expectations of 0,4%. In addition, the Core CPI index, which excludes volatile items such as food and energy, came in at 3,5%, compared with a projection of 3,8%. These results suggest that inflationary pressures are easing, fueling speculation that the Federal Reserve may adopt a less aggressive monetary policy in 2025.
At the time of publication, the price of Bitcoin was quoted at US$95.724,28, up 4.6% in the last 24 hours.
On the other hand, yields on 10-year US Treasury bonds rose to 4,82%, the highest level in 14 months, contrasting with the trend expected in a scenario of lower inflation. The increase in yields was associated with the growth of US public debt, which reached $36,2 trillion in December, increasing the cost of financing and generating uncertainty in the financial market. This scenario highlighted a mismatch between the fixed income and crypto markets, which continue to show different reactions to the same economic stimuli.
Bitcoin was accompanied by gains in other cryptocurrencies and related assets, such as brokerage and mining stocks. Companies linked to the crypto market recorded significant gains, driven by the increase in risk appetite. Despite the optimism, technical analysis indicates that Bitcoin faces important resistance in the $97.328 range, with support identified near $89.164, which could limit its recovery in the short term.
It starts to become a weekly tremendous for # Bitcoin . pic.twitter.com/5FoHlTVCr8
- Michaël van de Poppe (@CryptoMichNL) January 14, 2025
Investors are seeing moderate buying volumes, indicating that caution still prevails. Recent technical movements suggest that market participants are waiting for additional confirmation before adopting new positioning strategies, especially given the persistent volatility that accompanies crypto assets.
The performance of Bitcoin and other digital assets remains dependent on macroeconomic factors, including fiscal and monetary policy conditions in the United States, as well as the evolution of interest rates and the behavior of the dollar, which continue to be significant influences on the cryptocurrency market.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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