Bitcoin approaches $100,000 again as cool inflation reading fuels risk appetite

Bitcoin continued its rebound on Wednesday, hovering just below $100,000 after another encouraging inflation report increased investors’ appetite for risk.

The price of the major cryptocurrency recently rose more than 3% at $99,444.43, bringing its two-day gain to about 7%, according to Coin Metrics.

the CoinDesk 20 The index, which measures the broader cryptocurrency market, rose 6%.

shares Coinbase He got 6%. Bitcoin agents Accurate strategy and Mara Holding Each gained about 4%.

Wednesday’s move followed the release of the December consumer price index, which showed core inflation It slowed unexpectedly in December. The previous day, the market got another bright reading on inflation in the Producer Price Index, which showed wholesale prices It rose less than expected in December.

Cryptocurrencies’ post-election rally faded to the end of 2024 after Federal Reserve Chairman Jerome Powell issued an inflation warning on December 18, and Bitcoin suffered bigger losses last week as a rise in bond yields prompted investors to unload growth-oriented risk assets. . This Monday, Bitcoin briefly It fell below $90,000.

The price of Bitcoin has been taking its cues from the stock market in recent weeks, thanks in part to the popularity of Bitcoin ETFs, which has led to the institutionalization of the asset. Bitcoin’s correlation with the S&P 500 has risen in the past week, while its correlation with gold has fallen sharply since the end of December.