What You Need to Know:
- Bitcoin made gains after a period of decline influenced by U.S. Producer Price Index data.
- Both XRP and Dogecoin drove price uplifts, with the CoinDesk 20 Index exceeding Bitcoin's performance.
- Upcoming economic reports may impact crypto prices.
Bitcoin's Rally
The cryptocurrency market witnessed a rebound after a steep drop on Monday, with Bitcoin (BTC) reaching $97,300 as traders braced for new U.S. inflation data. The price drop below $90,000 was swiftly followed by a recovery attributed to potential favorable executive actions from Donald Trump upon his inauguration, supporting the crypto sector.
BTC recently traded at $96,500, marking a 3% rise in 24 hours, while the broader CoinDesk 20 Index saw a notable 5% increase, with XRP and Dogecoin displaying 6%-7% price advances.
Economic Outlook
The traditional markets saw minimal fluctuation, yet the anticipated reports this week, particularly the Consumer Price Index (CPI), are expected to stir further market volatility and provide insights into the Federal Reserve’s future policy directions.
Future Market Movements
Trump's inaugural day on January 20 is also poised to influence the crypto market, with increased speculation surrounding his administration's potential pro-crypto measures. Research by K33 suggests that previous assumptions about a sell-the-news event may need reevaluation in light of current market dynamics.
