Bitcoin returns above $97,000 in stunning reversal as light inflation data boosts risk appetite
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Bitcoin rebounded on Tuesday, rising with other risk assets as traders digested light inflation readings.
On Tuesday, the price of the leading cryptocurrency rose 4% to $96,676.94, according to Coin Metrics, after slipping below the $90,000 support level at the start of the week. The broader crypto market, as measured by CoinDesk 20 index, added 3.9%.
Bitcoin is rebounding from its recent decline
Shares of Coinbase and Microstrategy received more than 3% and 5% respectively. Mining stocks Mara Holdings and Core Scientific they increased by about 5%.
This move comes as reported by the Bureau of Labor Statistics inflation lower than expected Tuesday. The producer price index, which measures wholesale inflation, rose just 0.2% in December, while economists polled by Dow Jones had expected a rise of 0.4%.
Prices are crypto stuck in a tug of war between investor concerns about rising inflation under the incoming Donald Trump administration and optimism about the president-elect’s pro-crypto leadership, which could significantly support the industry this year. As a result, traders are expecting a rougher-than-expected January, which could extend throughout the quarter.
Bitcoin fell last week after higher-than-expected payrolls numbers caused bond yields to jump, prompting investors to dump risky growth-focused assets. Headlines about Trump’s tariff plans also spooked investors, giving a boost to the dollar, which has an inverse relationship with bitcoin.
Fundstrat’s Tom Lee told CNBC “Squawk Box” Monday that bitcoin could correct to $70,000 before breaking new records and eventually ending the year between $200,000 and $250,000. Crypto traders are used to steep bitcoin pullbacks during bull markets.
Bitcoin is 10% lower than its record high since December 17th. It grew by 3% in 2025.
