Bitcoin Bounces Back from CPI Drop, Trading Near $97,500
Bitcoin (BTC) has staged a notable recovery after dipping to just above $94,000 earlier on Wednesday, following unexpectedly high U.S. inflation data. The cryptocurrency quickly regained momentum, climbing to approximately $97,500.
While many other digital assets also saw upward movement, Bitcoin led the way with a 1.4% gain over the past 24 hours, compared to a more modest 0.5% rise in the CoinDesk 20 Index.
Federal Reserve Chairman Jerome Powell, who has been testifying before Congress for the second day, emphasized that the latest Consumer Price Index (CPI) reading signals that the central bank is closing in on its inflation goals, though there’s still some ground to cover.
Bitcoin’s price had surged past $109,000 shortly before President Trump’s inauguration on January 20 but has since been on a downward trend. The current 4% bounce from this morning’s low may indicate that bears are taking profits after pushing the price lower.
U.S. stock markets have also experienced a rebound, with the Nasdaq recovering slightly after falling more than 1% earlier in the day.
A potential positive catalyst for market sentiment may be President Trump’s report of a productive conversation with Russian President Putin, discussing a possible resolution to the ongoing war in Ukraine, which helped lift investor confidence in both crypto and traditional markets.
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