Bitcoin Price $96K Cements As ‘Critical’ US PPI Data Boosts Stocks
Bitcoin (BTC) touched $96,000 on Wall Street on January 14th as US macro data boosted BTC price recovery.
BTC/USD 1-Hour Chart. Source: Cointelegraph/TradingView
Bitcoin joins stocks in PPI trust
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD making extended gains, hours after the pair hit two-month lows a day earlier.
Up more than 2% on the day, Bitcoin strengthened its rebound after the December publication of the US Producer Price Index (PPI), which came in below expectations.
On both the monthly and annual timescales, while overall inflation was a concern, it provided some relief for both risk-asset traders and the Federal Reserve.
“A smaller increase than expected, but PPI inflation has reached its highest level since February 2023. More evidence that inflation is picking up again,” Marketing Resource summarized in part a response to Kobe's letter on X.
Kobayashi acknowledged that the stock market was buoyed by the numbers, but pointed out that the PPI was just one of a series of macro data released this week, including the Consumer Price Index (CPI).
“On a more constructive note, month-on-month PPI inflation increased by 0.2%, below expectations of 0.4%,” he added.
“Stocks rose sharply on this data, but CPI inflation will be critical tomorrow.”
PPI 12-month % change. Source: Bureau of Labor Statistics
Trading firm QCP Capital sees the potential for markets to adjust to a more hawkish Fed stance on interest rate cuts.
“Key PPI and CPI data are on the horizon. As markets begin to adjust to the reality of a prolonged high-level environment, we think potential surprises may surface with some entertaining the possibility of a rate hike,” he told Telegram channel subscribers that day.
QCP cited positive news regarding US President-elect Donald Trump's first day policies.
The trend of the BTC price increases the interest of traders
Bitcoin traders weighed in on the possibility of a move higher soon after dipping below $90,000 for the first time since mid-November.
Related: Strongest US Dollar since 2022 Bear Market: 5 Things to Know in Bitcoin This Week
“The market seems to be very underweight at the current price,” wrote prominent trader Skew in his Daily X analysis.
Maybe not swept under $85K but a relatively low position in the market. Perps continue to decline with index prices and lower funding levels, meaning people aren't at risk here.
BTC/USDT futures 1-hour chart with order book data. Source: Skew/X
Others were more sanguine, describing the trader's return to crypto-chases as “a great local move.”
“I don't think we'll be bullies again if it's full again. It's worthless if we identify the target before it enters,” explained X's comment section with an accompanying chart.
BTC/USDT 4-Hour Chart. Source: Crypto Chase/X
For his part, trader and analyst Rect Capital pointed to what he called an “exaggerated bullish divergence” involving Bitcoin's Relative Strength Index (RSI).
“Over $91,000 is secured every day,” he confirmed.
“The $91000-$101000 range and initial high-low are maintained on the RSI. The overestimated bullish divergence remains intact.
BTC/USD 1-day chart with RSI data. Source: Rekt Capital/X
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
