Bitcoin Recovers from CPI-Induced Drop, Trading Near $97,500
Bitcoin (BTC) staged a recovery after dipping below $94,000 earlier in the day following stronger-than-expected U.S. inflation data. The digital asset quickly bounced back, climbing to around $97,500.
While other cryptocurrencies also saw gains off their lows, Bitcoin led the charge with a 1.4% increase over the last 24 hours. In comparison, the broader CoinDesk 20 Index posted a modest 0.5% rise.
Federal Reserve Chairman Jerome Powell, speaking before Congress for the second consecutive day, noted that the latest Consumer Price Index (CPI) reading shows the central bank is nearing its inflation target, though it hasn’t quite reached the goal yet.
Bitcoin had surged above $109,000 in the hours leading up to President Trump’s inauguration on January 20, but has since been on a downtrend. The current 4% rebound from this morning’s low could reflect profit-taking from short-sellers, who have largely dominated the market since the inauguration.
U.S. stock markets also recovered from their earlier losses, with the Nasdaq down only slightly after having been more than 1% lower earlier.
Another potential factor influencing market sentiment was President Trump’s mention of a productive phone conversation with Russian President Vladimir Putin, discussing a potential resolution to the ongoing conflict in Ukraine. This news helped ease the mood in both crypto and traditional markets.
