Bitcoin is climbing back towards $100,000, driven by positive inflation news that has investors feeling more optimistic.
New York: Bitcoin is on the rise again, sitting just under $100,000 after a solid inflation report got investors excited. It’s up over 2% at around $99,034.55, marking a nice 7% gain over the last couple of days.
The broader crypto market is also looking good, with the CoinDesk 20 index up by 5%. Stocks related to Bitcoin, like Coinbase, are seeing gains too, with shares up 6%. MicroStrategy and Mara Holdings are both up about 5% as well.
This boost comes after the December consumer price index showed that core inflation unexpectedly slowed down. Just a day before, the producer price index also revealed that wholesale prices rose less than anticipated in December.
After a rough patch post-election, where Bitcoin dipped below $90,000, it seems to be bouncing back. The recent inflation warnings from the Federal Reserve had investors worried, but now things are looking brighter.
Bitcoin has been closely following the stock market lately, especially with the rise of Bitcoin ETFs, which have made it more appealing to institutional investors. Its connection to the S&P 500 has increased, while its link to gold has dropped significantly since late December.
