Bitcoin Price Today: $97,200
- Bitcoin recovers above $97,000** after retesting **$90,000 support earlier this week.
- Upcoming US CPI data (Consumer Price Index) may trigger BTC price volatility.
- K33 Research suggests Trump’s potential expansionary policies could boost risk assets like Bitcoin.
Bitcoin (BTC) continues its upward trajectory, trading above $97,200 as of Wednesday. Traders remain cautious ahead of the US inflation data release, which could dictate short-term market sentiment.
According to K33 Research, former President Donald Trump’s proposed policies—extending 2017 tax cuts and adding relief for working-class Americans—may fuel demand for high-risk assets, including cryptocurrencies.
Market Drivers: US Inflation and Fed Policy
Recent Producer Price Index (PPI) data showed a 0.2% rise in December, below expectations. This softer inflation metric paused the US Treasury yield surge, temporarily easing pressure on risk-sensitive assets like Bitcoin.
FXStreet analyst Haresh Menghani notes:
"Softer inflation data revived investor appetite for riskier assets, supporting Bitcoin’s rebound."
Key factors to watch:
- Core CPI MoM: A figure below 0.3% could signal easing inflation, increasing Fed rate-cut odds.
- Fed decision impact: Rate cuts typically benefit cryptocurrencies by lowering yields on traditional assets.
👉 Why Bitcoin’s correlation with Nasdaq matters
Bitcoin’s Correlation with Nasdaq Hits 2024 High
K33 Research highlights Bitcoin’s growing 30-day correlation with Nasdaq, reflecting shared macroeconomic pressures:
- Rising 10-year Treasury yields and a stronger US Dollar (USD) have weighed on both markets.
- Reduced Fed rate-cut expectations further dampened bullish momentum.
VanEck CEO Jan van Eck observes:
"Bitcoin’s recent Nasdaq correlation is atypical. Historically, its 10-year correlation is near zero—ideal for portfolio diversification."
Trump’s Crypto Policies: A Potential Catalyst
Analysts speculate Trump may introduce crypto-friendly regulations, bolstering market confidence.
Bitcoin Price Forecast: Recovery or Further Correction?
Technical indicators suggest mixed signals:
- RSI (52): Neutral but rising, indicating growing bullish momentum.
- MACD: Nearing a bullish crossover, potentially signaling an uptrend.
Key price levels:
- Upside: A close above $100,000** could retest the **all-time high of $108,353.
- Downside: A break below $90,000** may lead to **$85,000 support.
👉 Bitcoin’s volatility explained
FAQs: Bitcoin, Altcoins, and Stablecoins
1. Why is Bitcoin considered a store of value?
Bitcoin’s limited supply (21 million) and decentralized nature make it a hedge against inflation, akin to digital gold.
2. How do altcoins differ from Bitcoin?
Altcoins (e.g., Litecoin, Ethereum) are alternative cryptocurrencies, often offering specialized use cases like smart contracts.
3. What role do stablecoins play?
Stablecoins (e.g., USDT) reduce volatility by pegging value to assets like the USD, facilitating seamless crypto trading.
4. What does Bitcoin dominance indicate?
High BTC dominance signals investor preference for Bitcoin during market uncertainty; declines often precede altcoin rallies.
Disclaimer:
This article contains forward-looking statements subject to risks. Cryptocurrency investments are volatile; conduct independent research before deciding. The author holds no positions in mentioned assets.
Sources: K33 Research, FXStreet, Bloomberg
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