Bitcoin Reaches $100,000 Again as Risk Appetite is Fueled by a Cool Inflation Reading Wednesday saw Bitcoin continue to rise, circling $100,000 as investors' appetite for risk was stoked by yet another positive inflation report. According to Coin Metrics, the flagship cryptocurrency's price increased by over 3% to $99,493.26, completing a 7% two-day rise. In …
Bitcoin Reaches $100,000 Again as Risk Appetite is Fueled by a Cool Inflation Reading
Wednesday saw Bitcoin continue to rise, circling $100,000 as investors’ appetite for risk was stoked by yet another positive inflation report.
According to Coin Metrics, the flagship cryptocurrency’s price increased by over 3% to $99,493.26, completing a 7% two-day rise. In late afternoon trade, it reached a peak of $100,715.13.
The CoinDesk 20 index, which tracks the cryptocurrency market as a whole, increased by 7%.
Coinbase’s stock increased 7%. MicroStrategy and Mara Holdings, two Bitcoin proxies, had gains of 5% and 4%, respectively.
The action on Wednesday came after the December consumer price index was released, revealing an unexpected slowdown in core inflation in December. The producer price index gave the market another positive inflation number a day earlier, indicating that wholesale prices increased less in December than anticipated.
After Federal Reserve Chair Jerome Powell issued an inflation warning on December 18, the post-election cryptocurrency boom faded into the end of 2024. Bitcoin saw even more severe losses last week as investors dumped growth-oriented risk assets due to a jump in bond yields. Bitcoin temporarily fell below $90,000 on Monday.
Due in part to the success of bitcoin ETFs, which have institutionalized the commodity, the price of bitcoin has been following the movements of the stock market in recent weeks. In the last week, Bitcoin’s connection with the S&P 500 has increased, but since the end of December, its correlation with gold has drastically decreased.
Newsletter
Keep in touch with our news & offers
