Bitcoin price cements $96K as ‘crucial’ US PPI data boosts stocks

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On January 14th when the stock market opened, Bitcoin (BTC) stood firm at approximately $96,000. Strong U.S. economic data helped spur a resurgence in Bitcoin’s price.

Bitcoin joins stocks in PPI confidence

Information gathered from CryptoMoon Markets Pro and TradingView indicates that the BTC/USD exchange rate continued to increase, starting several hours following a two-month minimum that was reached the previous day.

As a crypto investor, I’m thrilled to see that Bitcoin surged over 2%, solidifying its recovery. This uptick can be attributed to the unexpectedly low December print of the US Producer Price Index (PPI).

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Regarding both short-term (monthly) and long-term (annual) perspectives, the Producer Price Index (PPI) provided some degree of reassurance to risk-asset traders and the Federal Reserve, although it’s important to note that the broader issue of inflation remains a cause for concern.

PPI inflation has surged to its highest level since February 2023, showing a stronger-than-anticipated upward trend, as analyzed by The Kobeissi Letter in their recent commentary on X.

Kobeissi recognized the quick rise in stock prices based on the presented figures, yet emphasized that the Producer Price Index (PPI) was just one of several major economic data reports this week. Other important indicators, such as the Consumer Price Index (CPI), are also due to be released this week.

As an analyst, I’d like to shift gears and focus on a positive perspective. Contrary to the anticipated increase of 0.4%, the monthly Producer Price Index (PPI) inflation actually rose by 0.2%. This means that the actual inflation was lower than expected.

“Stocks are up sharply on this data, but CPI inflation tomorrow will be crucial.”

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The investment firm, QCP Capital, foresaw that financial markets might adapt to a more aggressive stance by the Federal Reserve regarding interest rate increases.

Important PPI and CPI figures are approaching. We believe there could be unexpected positive changes, as markets gradually adapt to the extended period of increased interest rates. Some analysts are even discussing the possibility of an additional rate increase,” was shared with Telegram subscribers on that particular day.

QCP referenced positive rumors surrounding first-day policies by US President-elect Donald Trump.

BTC price trend gets traders interested

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As a crypto investor, I’ve been considering the potential for an upward trend following the recent dip below $90,000 for Bitcoin – a drop not seen since mid-November. The question on my mind is whether this downward movement could be a temporary setback or the start of a larger correction.

According to a well-known trader, Skew, the current market price might be suggesting that it’s underrepresented or even showing signs of fear, based on their analysis of X for today.

“May have not swept below $85K but relatively low positioning in the market. Perps continue to discount index prices & low funding, meaning people are not taking on risks here.”

Others showed higher levels of assurance, as fellow trader Crypto Chase referred to the recovery as an “ideal temporary shift.

If it drops after reaching a high point, it seems unlikely that we’re truly bullish again. However, if the target price is hit before the bullish signal is confirmed, this analysis could be invalidated.

Currently, Rekt Capital, a trader and analyst, has highlighted a situation he terms as “overly optimistic price movement” in the context of Bitcoin’s Relative Strength Index (RSI).

“Daily Close above $91000 secured,” he confirmed.

“The $91000-$101000 range and early-stage Higher Low on the RSI have been preserved. The exaggerated Bullish Divergence remains intact.”

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2025-01-14 18:59