Bitcoin’s price jumped to over $96,000, fueled by positive inflation data and a rebound in the crypto market.
New York: Bitcoin made a big leap on Tuesday, climbing up as traders reacted to some good inflation news. It shot up by 3.7%, hitting $96,363.58, after dipping below $90,000 earlier in the week. The overall crypto market also saw a nice bump, gaining 3.4%.
Stocks like Coinbase and MicroStrategy were up about 4% in premarket trading, and mining companies like Mara Holdings and Core Scientific followed suit. This surge came after the Bureau of Labor Statistics shared that inflation was cooler than expected, with the producer price index rising just 0.2% in December, lower than the 0.4% that economists had predicted.
Right now, the crypto scene feels a bit like a tug of war. Investors are worried about rising inflation with the new administration, but there’s also some optimism about how the president-elect might support the crypto industry this year. Traders are bracing for a bumpy January, which could stretch into the next few months.
Last week, Bitcoin took a hit after stronger payroll numbers led to a spike in bond yields, making investors sell off riskier assets. News about Trump’s tariff plans also rattled nerves, boosting the dollar, which usually goes against Bitcoin’s value.
Fundstrat’s Tom Lee mentioned on CNBC that Bitcoin might drop to around $70,000 before it breaks new records, potentially ending the year between $200,000 and $250,000. It’s not unusual for Bitcoin to see big drops during a bull market.
Currently, Bitcoin is about 10% off its record from December 17, but it’s still up 3% in 2025.
