Bitcoin Climbs to $97,500 After Initial CPI Drop
Bitcoin (BTC) has reversed an earlier slump to just above $94,000, which followed the release of stronger-than-expected U.S. inflation data. The cryptocurrency has since regained momentum, trading around $97,500.
Bitcoin led the rally among digital assets, with a 1.4% gain over the past 24 hours, compared to the broader CoinDesk 20 Index, which rose 0.5%.
In his second day of testimony before Congress, Federal Reserve Chairman Jerome Powell stated that today’s CPI data shows the central bank is getting closer to its inflation goal, but it still has further progress to make.
Bitcoin’s price had peaked over $109,000 in the lead-up to President Trump’s inauguration on January 20, but has been on a downtrend since. The 4% recovery from this morning’s low could indicate that short sellers are booking profits after pushing prices down.
Meanwhile, U.S. stocks have also bounced back from their worst levels, with the Nasdaq now showing only a slight decline after dropping by more than 1% earlier.
Another factor influencing market sentiment could be President Trump’s announcement of a productive phone conversation with Russian President Putin, discussing a potential resolution to the conflict in Ukraine. This news appeared to lift both crypto and traditional market confidence.
