Dogecoin, XRP Lead Crypto Rebound as Bitcoin Surges Past $96,000
January 14, 2025, 10:00 PM UTC – The cryptocurrency market showed signs of recovery on Tuesday after experiencing a sharp selloff earlier in the week. Bitcoin (BTC), the leading digital currency, climbed back to impressive levels, reaching as high as $97,300 as traders turned their attention toward upcoming inflation data from the United States.
Market Movements and Influences
Following a significant drop that saw Bitcoin dip below $90,000 on Monday, demand surged with reports emerging that President-elect Donald Trump is preparing executive orders that could benefit the cryptocurrency industry. This anticipation contributed to an uptick in Bitcoin’s price, along with news about softer-than-expected readings from the U.S. Producer Price Index (PPI) for December. As of Tuesday evening, BTC was trading at $96,500, reflecting a 3% increase over the past 24 hours.
Other cryptocurrencies also posted notable gains, with the broader CoinDesk 20 Index rising by 5%. Altcoins such as Ripple’s XRP and Dogecoin (DOGE) were particularly strong performers, advancing between 6% to 7% as market sentiments shifted positively.
Traditional Markets
In traditional financial markets, the tech-heavy Nasdaq and the S&P 500 indices closed roughly flat, indicating a cautious approach among investors amid fluctuating economic indicators. Bitcoin continues to trade within a consolidating range above the $90,000 mark, even as rising bond yields and a strong U.S. dollar have unsettled global markets over recent weeks. Investors have begun reassessing their expectations concerning lower interest rates in the U.S. for the current year, influenced by recent robust economic data releases.
Key Upcoming Economic Indicators
Looking ahead, traders are preparing for the Consumer Price Index (CPI) report set to be released tomorrow, anticipating that it could create further volatility in the markets. This key report will offer additional insights into the Federal Reserve’s potential monetary policy strategies for the year.
Trump’s Inauguration: Possible Impact on Crypto Prices
The upcoming inauguration of Donald Trump on January 20 could also drive market movements, particularly as speculation grows around his administration’s stance towards cryptocurrencies. K33 Research has previously noted that the inauguration could represent a ‘sell-the-news’ event due to the heightened expectations surrounding Trump’s policies. However, the recent downturn in both stock and crypto markets has led the research firm to revise its outlook.
“Our monthly view favored selling during the inauguration, but we now believe that selling BTC at that time is less appealing unless there’s a strong resurgence in market momentum over the next few days,” the report stated. They noted that potential de-risking strategies would depend on the price action leading up to the inauguration, while maintaining an optimistic long-term outlook for Bitcoin under Trump’s leadership.
Conclusion
As traders await critical economic data and analyze the implications of the incoming Trump administration, the crypto market remains in a state of flux. The next few days could be pivotal in determining market direction, with Bitcoin and leading altcoins eyeing further gains amidst a combination of political and economic developments.
For further updates and insights, follow our coverage on cryptocurrency markets.
By Krisztian Sandor, a recent graduate from NYU’s business and economic reporting program and a Fulbright fellow, with previous experience at Reuters and Forbes. Currently based in New York, Krisztian holds positions in BTC and ETH.
