Favorable Inflation Data Sends Bitcoin Toward $99K, What's Next?

View in browser Positive Inflation Data Sends Bitcoin to $99K, What's Next? Hello, everyone, and happy Wednesday! As we mentioned in yesterday's newsletter, today is an exciting day because of the release of the US Consumer Price Index.  Fortunately, the numbers were favorable, as the CPI increased by 2.9% year-over-year, which was in line with expectations. On the other hand, the Core CPI, which includes more volatile sectors such as food and energy, is slightly under the estimations at 3.2%.  Although the increase for December was the largest in eight months and slightly bigger than that for November, cryptocurrency prices reacted with immediate gains. BTC stood at just shy of $97,000 in preparation for the CPI numbers but shot up immediately to over $98,500 after the news broke out. This is the asset's highest price tag in just over a week. Moreover, BTC is up by nearly ten grand since its bottom on Monday at $89,200. Perhaps the markets reacted prematurely to the upcoming inflation data, and investors acted ahead of the actual news. Price Action Total Mkt Cap: $3.6 Trillion | 24HR Liquidations: $245M | Sentiment: Greed  Thanking our Newsletter sponsor: Credefi: the ultimate RWA gateway. Connecting crypto lenders with SME borrowers since 2021. Discover predictable yields on your idle crypto assets. Bitcoin The primary cryptocurrency had a highly volatile week as it traded above $102,000 last Tuesday but headed straight south in the following days. The culmination, at least at first, came last Thursday when BTC slumped to a monthly low of $91,250. It bounced off and recovered some ground in the following days but started to drop hard once again at the start of the current business week. As reported on Monday, the asset plunged by several grand in hours and dipped below $90,000 for the first time since November. The bulls finally stepped up on the gas pedal at this point and didn't allow a further decline. Just the opposite, bitcoin started to recover some ground rapidly and spiked to $96,000 yesterday. It kept climbing gradually in the early Wednesday hours and neared $100,000 for the first time in a week. Altcoins The biggest gainers from the larger-cap alts are Ripple and Stellar. Both assets have gained around 10% over the past 24 hours and sit above $2.8 and $0.45, respectively. Cardano is also well in the green as it managed to reclaim the $1 level. Other alts with minor gains today include DOGE, TON, AVAX, and LINK. In contrast, ETH, SOL, BNB, TRX, and SUI are with some losses within the same timeframe. The total crypto market cap has recovered over $200 billion since Monday's low and is above $3.5 trillion Best Performers Virtuals Protocol (VIRTUAL) +24% ai16z (AI16Z) +17% Algorand (ALGO) +14% Worst Performers Tokenize Xchange (TKX) -14.6% Movement (MOVE) -2% Content Bitcoin (CTB) -2.2% The Crypto News You Can't Miss Ripple's $100K donation joins Jared Isaacman's pledge to match up to $1M in wildfire relief funds, aiming to raise $2M with The Giving Block. Read the full story. Italy's largest banking institution, Intesa Sanpaolo, has reportedly bought Bitcoin worth €1 million. The transaction marks the first direct cryptocurrency purchase by a bank in the country, potentially reshaping its cautious approach to digital assets. Read the full story. Scammers exploited SoSoValue's funding news to promote a fake token and phishing links to a site disguised as a sale portal for its products. Read the full story. Binance argued against U.S. securities jurisdiction, but the court upheld American investors' protection under U.S. laws. Read the full story. Your Daily Crypto Did You Know Did you know that the concept of smart contracts was introduced in 1994 by Nick Szabo, decades before Ethereum implemented them? CryptoPotato 39 Ludgate Hill, London United Kingdom You received this email because you signed up on our website or made purchase from us. Unsubscribe