Ripple’s DOGE and XRP Outperform Bitcoin (BTC) Price Recovery as Traders Await Key CPI Report

Cryptocurrency prices rebounded after Bitcoin was erased on Monday (Bitcoin) rose to a high of $97,300 on Tuesday as traders awaited the latest set of US inflation data with more data tomorrow.

Cryptocurrency’s biggest drop below $90,000 yesterday was quickly bought into by reports that Donald Trump is preparing… Executive orders on day one Benefit from the crypto industry. The advance continued today, supported by a weaker-than-expected US performance Producer price index Producer Price Index (PPI) readings for December.

BTC recently traded at $96,500, up 3% over the past 24 hours, while the benchmark CoinDesk 20 Index broadly outperformed with a 5% gain. ripple XRP and Dogecoin (Doug) led the major altcoins with a 6%-7% advance.

In traditional markets, the tech-rich Nasdaq and S&P 500 closed roughly flat.

Zooming out, Bitcoin is still consolidating sideways above $90,000, while rising bond yields and the US dollar have rocked markets around the world over the past weeks. Market participants have already trimmed their expectations for lower US interest rates this year amid the recent release of hot US economic data.

Wednesday’s Consumer Price Index (CPI) report could inject another wave of volatility into markets and provide more clues to traders about the Federal Reserve’s policy path for the year.

Looking beyond that, Trump’s inauguration scheduled for January 20 could also move markets as anticipation grows for the next president’s pro-crypto actions.

K33 Research previously expected the inauguration to be an opportunistic news-selling event amid rising expectations, but a sell-off in stocks and digital assets early in the year made the company reconsider its view.

“While our monthly forecast favored selling at the inauguration, we would like to rework this strategy because selling Bitcoin at the inauguration is significantly less attractive unless the next six days provide a significant resurgence of momentum,” the report said. “Yesterday the S&P 500 closed its post-election gap, and Bitcoin hit two-month lows.”

“De-risking will depend entirely on next week’s price action and is short-term in nature, as we maintain a long-term bullish outlook for Trump’s impact on Bitcoin,” the authors added.