DOGE, Ripple’s XRP Surpasses Bitcoin’s (BTC) Price Pullback As Traders Await Key CPI Report

On By Littum

Crypto prices bounced from Monday’s wipeout with bitcoin (BTC) rising as high as $97,300 on Tuesday as traders eyed the latest batch of US inflation data with more to come tomorrow.

The biggest crypto dip below $90,000 yesterday was quickly bought up on reports that Donald Trump is preparing first day notices benefiting the crypto industry. The advance continued today, supported by softer than expected US Producer price index (PPI) readings for December.

BTC recently changed hands at $96,500, up 3% over the past 24 hours, while the broad market benchmark CoinDesk 20 Index fared better, up 5%. Ripple’s XRP and dogecoin (DOGE) led the altcoin majors with 6%-7% gains.

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

Zooming out, bitcoin is still consolidating sideways above $90,000 as rising bond yields and the US dollar roiled markets across the globe in recent weeks. Market participants have already scaled back expectations of lower interest rates in the US this year amid recent warm US economic data.

Wednesday’s Consumer Price Index (CPI) report could inject markets with another burst of volatility and provide further clues for traders on the Federal Reserve’s policy path for the year.

Looking past that, Trump’s inauguration ceremony scheduled for January 20 could also move markets as anticipation builds for the incoming president’s pro-crypto actions.

K33 Research previously predicted the inauguration could be an opportunistic sales-news event amid heightened expectations, but the early-year selloff in stocks and digital assets prompted the firm to revise its view.

“While our monthly outlook favored selling the opening, we would like to reframe this strategy as selling BTC at the opening is significantly less appealing unless the next six days offer a significant revival of momentum,” the report said. “The S&P 500 closed its post-election gap yesterday and BTC hit a 2-month low.”

“De-risking would be completely path-dependent on next week’s price action and short-term in nature as we have bullish long-term expectations for Trump’s impact on BTC,” the authors added.