Dogecoin, XRP Surge; Bitcoin Hits $96K Ahead of Inflation Data, Inauguration
Cryptocurrency markets recover after Monday's selloff, with Bitcoin reaching $96K and altcoins XRP and Dogecoin leading gains.
By Tylt Editorial Team
Bitcoin surged to $96,500, recovering from a dip below $90,000.
XRP and Dogecoin led altcoin gains with 6%-7% price increases.
Traders anticipate market volatility with upcoming CPI report and Trump's inauguration.
Cryptocurrency markets rebounded strongly on Tuesday, with Bitcoin climbing to $96,500, marking a 3% increase in the past 24 hours. This recovery follows Monday’s sharp selloff, which saw the leading cryptocurrency briefly dip below $90,000. Investors quickly capitalized on the dip amid reports of potential pro-crypto executive orders from Donald Trump as part of his upcoming inauguration agenda.
Altcoins also saw a notable resurgence, with Ripple’s XRP and Dogecoin emerging as top gainers. Both recorded price increases of 6%-7%, contributing to a 5% overall gain in the CoinDesk 20 Index, which tracks an altcoin-heavy basket of cryptocurrencies. The broader crypto market outperformed Bitcoin’s recovery, reflecting renewed interest in riskier assets.
The market's rally was supported by unexpectedly soft U.S. Producer Price Index (PPI) data for December, which eased concerns about persistently high inflation. However, traders are eyeing Wednesday’s Consumer Price Index (CPI) report as the next major driver of market sentiment. The CPI data is expected to shed more light on the Federal Reserve’s monetary policy direction for 2025.
In the traditional financial markets, the S&P 500 and Nasdaq ended the day flat, signaling uncertainty amid soaring bond yields and a strengthening U.S. dollar. Cryptocurrencies, however, continue to consolidate, with Bitcoin stabilizing above $90,000 despite recent volatility.
Looking ahead, the January 20 inauguration of Donald Trump remains a potential catalyst for crypto markets. Trump’s campaign promises and initial executive actions have fueled speculation about pro-crypto policies that could benefit the industry. K33 Research, which previously warned of a potential “sell-the-news” reaction during the inauguration, has softened its stance following the early-year selloff. The firm now suggests a more cautious approach, emphasizing the importance of short-term market momentum in shaping trading strategies.
While the road ahead remains uncertain, long-term expectations for Bitcoin and the broader crypto market remain bullish, underpinned by growing institutional interest and macroeconomic factors.
