Cryptocurrency prices experienced a significant rebound following a dip on Monday, with Bitcoin (BTC) surging to $97,300 on Tuesday. This increase was fueled by reports suggesting that former President Donald Trump is preparing to issue executive orders on his first day in office that will benefit the crypto industry. Additionally, softer than expected U.S. Producer Price Index (PPI) readings for December provided further support for the market.
As of the latest data, BTC is trading at $96,500, representing a 3% increase over the past 24 hours. The CoinDesk 20 Index, a broad market benchmark, also saw a 5% gain. Altcoins such as Ripple’s XRP and Dogecoin (DOGE) led the way with gains of 6%-7%.
In contrast, traditional markets like the Nasdaq and the S&P 500 closed relatively flat. Bitcoin, however, continues to consolidate above $90,000 as global markets grapple with rising bond yields and a strengthening U.S. dollar. Recent economic data releases have tempered expectations for lower interest rates in the U.S. this year.
The upcoming Consumer Price Index (CPI) report, scheduled for release on Wednesday, is expected to inject further volatility into the markets and offer insights into the Federal Reserve’s policy direction for the year ahead. Moreover, anticipation is building around Trump’s inauguration ceremony on January 20, as traders await potential pro-crypto actions from the incoming administration.
K33 Research previously suggested that the inauguration could trigger a sell-off in digital assets, but recent market conditions have led the firm to revise its outlook. While short-term de-risking strategies may be influenced by near-term price action, the long-term outlook remains bullish on the impact of Trump’s policies on Bitcoin.
Overall, market participants are closely monitoring economic indicators and political developments for cues on future market trends. The cryptocurrency market, in particular, remains dynamic and responsive to external factors, making it essential for traders to stay informed and adaptable in their strategies.