DOGE, Ripple’s XRP Outperform Bitcoin’s (BTC) Price Rebound as Traders Await Key CPI Report
Crypto prices rebound from Monday’s wipeout in bitcoin (BTC) rising as high as $97,300 on Tuesday as traders eyed the latest batch of US inflation data with more to come tomorrow.
Crypto’s biggest drop below $90,000 yesterday was quickly sold off on reports that Donald Trump is preparing first day executive order benefiting the crypto industry. The advance continued today, supported by a softer than expected US Producer Price Index (PPI) readings for December.
BTC recently changed hands at $96,500, up 3% over the past 24 hours, while the broad market benchmark CoinDesk 20 Index has topped the 5% gain. Ripple’s XRP and dogecoin (DOGE) led the altcoin majors with 6%-7% advances.
In traditional markets, the tech-heavy Nasdaq and the S&P 500 were mostly closed.
Zooming out, bitcoin is still consolidating sideways above $90,000 as rising bond yields and the US dollar have shaken markets around the world in recent weeks. Market participants have already scaled back expectations for lower US interest rates this year amid the recent hot release of US economic data.
Wednesday’s Consumer Price Index (CPI) report could inject another burst of volatility into markets and provide further clues for traders on the Federal Reserve’s policy trajectory for the year.
Over time, Trump’s inauguration ceremony set for January 20 could also move markets as anticipation builds for pro-crypto actions by the incoming president.
K33 Research previously projected that the inauguration could be an opportunistic sell-the-news event amid heightened expectations, but the early-year sell-off in stocks and digital assets made the company change its perspective.
“While our monthly view favors the inauguration sell, we would like to restate this strategy as the inauguration sell of BTC is less attractive unless the coming six days offer a major change in momentum,” the report said. “The S&P 500 closed its post-election gap yesterday, and BTC hit a 2-month low.”
“De-risking will be entirely dependent on the price action path next week and short-term in nature as we hold bullish long-term expectations for Trump’s impact on BTC,” the authors added.
