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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% to $96,676.94 on Tuesday after falling below the $90,000 support level at the start of the week, according to Coin Metrics. The broader crypto market to Coin table 20 The 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 the Bureau of Labor Statistics reports Inflation lower than expected Tuesday. 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 price is caught in a tug of war Investors worried about rising inflation under the incoming Donald Trump administration are optimistic that the president-elect’s pro-crypto leadership 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 “Gaga Box” Bitcoin Monday Can be revised to $70,000 It then breaks new records and eventually reaches between $200,000 and $250,000 by the end of the year. Cryptocurrency traders are used to huge drops in Bitcoin during bull markets.
Bitcoin is down 10% from its December 17 record. It will grow by 3% in 2025.
