Bitcoin Falls Behind Gold Amid Market Turmoil

Bitcoin Falls Behind Gold Amid Market Turmoil

As geopolitical and trade tensions rise, gold continues to strengthen its position as a safe haven,
while Bitcoin faces challenges in proving its ability to keep up with this trend.

 

Contents

 

 

 

 

 

Gold’s Dominance

After delivering a strong performance in 2024,
Bitcoin is now under increasing pressure due to rising geopolitical tensions and
the return of former U.S. President Donald Trump to the White House.
This has driven investors toward safe-haven assets such as gold.

Despite Bitcoin’s 3% increase since the beginning of the year, it still lags behind gold,
which has gained
9%, according to data from Bloomberg.
Gold reached a record high of
$2,882 per ounce following Trump’s controversial remarks on February 4,
suggesting that the United States could take control of Gaza—a statement that his aides later sought to downplay.
In contrast, Bitcoin is trading
about 10% below its recent peak.

 

 

 

 

 

 

 

Bitcoin’s Volatility

Although Bitcoin has been described as a store of value similar to gold—thanks to its fixed supply of 21 million coins—it has yet to establish itself as a true safe-haven asset during times of crisis.
Meanwhile, gold continues to attract investors, particularly amid
U.S.-China trade tensions and growing threats of new tariffs.
Unlike gold, Bitcoin often moves in parallel with technology stocks, making it more susceptible to volatility.

While Bitcoin is considered a hedge against fiat currencies, strong demand for the U.S. dollar continues to limit its appeal,
according to
Aoifinn Devitt, Chief Investment Officer at Moneta Group, in an interview with Bloomberg.
She noted that
“Bitcoin may develop its own unique characteristics over time, making it more independent from markets,
but for now, it remains one of the riskier assets.”

 

 

 

The Future of Currencies

Despite current challenges, Bitcoin supporters remain optimistic about its long-term potential as a reliable store of value.
Paul Howard, Senior Director at Wincent, explained that the emergence of exchange-traded funds (ETFs) that invest directly in crypto assets could help reduce Bitcoin’s volatility.
This, in turn, might encourage investors seeking high-risk opportunities to shift toward even more volatile cryptocurrencies.

With these ongoing changes, the key question remains: Will Bitcoin solidify its position as a digital alternative to gold, or will its volatility continue to hinder its transformation into a true safe-haven asset?

 

 

 

Bitcoin Falls Behind Gold Amid Market Turmoil

Bitcoin Surges on Trump Jr.’s Endorsement & Institutional Interest

Bitcoin Surges on Trump Jr.’s Endorsement & Institutional Interest:
Cryptocurrency prices continued their gains on Thursday,
Bitcoin exceeded $98,000 following a statement from Eric Trump, son of the U.S. President,
urging his family’s World Liberty platform to invest in the digital asset.

 

Contents

Bitcoin

Adopting Bitcoin

Bitcoin as a Treasury Asset

 

 

 

 

Bitcoin Surges on Trump Jr.’s Endorsement & Institutional Interest

Cryptocurrency prices continued their gains on Thursday, with Bitcoin surpassing $98,000,
after Eric Trump encouraged his family’s World Liberty platform to invest in Bitcoin.

Bitcoin rose 0.67% to $98,119, while Ethereum surged 2.39% to $2,832.35.
Ripple climbed 1% to $2.4288, while Dogecoin, supported by Elon Musk, gained 2% to $0.2626.
Meanwhile, Trump’s token saw substantial gains of 6.78%, reaching $19.03.

In a post on the X platform, Eric Trump emphasized
that the time was right for World Liberty to invest in Bitcoin.
According to CoinDesk, his comments came just hours after the cryptocurrency hit record highs.

Despite these gains, digital asset traders remain cautious.
According to CoinMarketCap data,
the cryptocurrency market transaction volume fell 30.62% over the past 24 hours to $119.64 billion.

 

Major Companies Adopting Bitcoin as a Key Investment Asset

MicroStrategy, a software company that has become one of the largest institutional Bitcoin investors,
has inspired many corporations to buy and hold Bitcoin in their reserves to support struggling stock prices.

According to CoinGate, a cybersecurity firm,
pharmaceutical and advertising companies have joined a list of 78 publicly traded companies
worldwide that have followed MicroStrategy’s approach of purchasing Bitcoin as an alternative to holding cash reserves.

Michael Saylor, the founder of MicroStrategy, began aggressively accumulating Bitcoin in 2020,
transforming it into the company’s primary reserve asset.
With Bitcoin surging to $109,000 this year,
MicroStrategy has become the most significant corporate holder globally,
increasing its market value to $87 billion, nearly double the value of its Bitcoin holdings.

 

 

 

 

New Companies Using Bitcoin as a Treasury Asset

Several companies have adopted MicroStrategy’s model, including KULR Technology,
a U.S.-based thermal energy management company.
CEO Michael Mo announced that 90% of the company’s cash reserves would be invested in Bitcoin,
causing KULR’s stock to quadruple in value during December.

Other companies have taken a different approach by issuing bonds to finance Bitcoin purchases.
Semler Scientific, for example, acquired 871 Bitcoins for $88.5 million using convertible bonds, driving its stock price up 120%.

Donald Trump’s recent statements have further fueled Bitcoin enthusiasm.
He pledged to position the U.S. as a global leader in digital assets and,
in January, signed an executive order to establish a task force assessing the creation of a national digital asset reserve.

Additionally, regulatory changes have made it easier for financial
institutions to hold cryptocurrencies, further supporting the crypto market.

 

Bitcoin Surges on Trump Jr.’s Endorsement & Institutional Interest

Cryptocurrencies Surge Ahead of Fed Decision as Bitcoin Exceeds $102,000

Cryptocurrencies Surge Ahead of Fed Decision as Bitcoin Exceeds $102,000:
Cryptocurrencies rallied on Wednesday despite investor caution ahead of the Federal Reserve’s interest rate decision.
Bitcoin recorded gains surpassing $102,000, while Ethereum, Ripple, and Dogecoin also rose.
Meanwhile, the “Trump” token saw a decline.

 

Contents:

Cryptocurrencies 

U.S. Oil Inventories
Chinese Demand Slowdown 

 

 

 

 

Cryptocurrencies Surge Ahead of Fed Decision 

Cryptocurrencies saw gains during Wednesday’s trading session despite
cautious market sentiment ahead of the Federal Reserve’s interest rate decision.
Bitcoin surpassed $102,000, with Ethereum, Ripple, and Dogecoin rising, while the “Trump” token declined.

Daily trading volume in the crypto market dipped amid expectations that the Fed would maintain interest rates.
In a significant development, the Czech National Bank announced that it is considering investing 5% of its reserves in Bitcoin.
Additionally, Bitwise filed to launch a Dogecoin exchange-traded fund (ETF).

Meanwhile, Matrixport predicted a 20% rise in Bitcoin’s price during the Chinese Lunar New Year holiday,
citing past years’ positive performance trends.

 

 

 

U.S. Oil Inventories Rise Amid Declining Distillate Stockpiles and Stable Prices

According to the American Petroleum Institute (API), U.S. crude oil inventories increased by 2.86 million barrels last week.
However, stockpiles at the key storage hub in Cushing, Oklahoma, fell by approximately 144,000 barrels.

API data also revealed a 1.89 million-barrel increase in gasoline inventories,
while distillate stocks—including diesel and heating oil—declined by 3.75 million barrels for the week ending January 24.

Oil prices climbed at Tuesday’s close in energy markets.
Brent crude futures for March delivery rose 0.55% to $77.49 per barrel,
while U.S. WTI crude futures for March gained 0.8%, settling at $73.77 per barrel.

 

Chinese Demand Slowdown Pressures European Luxury Goods Stocks

European luxury goods stocks declined on Wednesday after LVMH’s earnings report indicated a slowdown in consumer spending in China,
reflecting caution amid weakening economic growth.

LVMH shares fell by more than 5%, while shares of Kering and Christian Dior saw similar declines.
Despite LVMH reporting better-than-expected revenues of €84.68 billion for 2024,
sales in Asia—particularly in China—showed significant deceleration, negatively impacting the entire luxury sector.

 

Cryptocurrencies Surge Ahead of Fed Decision as Bitcoin Exceeds $102,000

Decline in Consumer Confidence and Easing of Cryptocurrency Restrictions

Decline in Consumer Confidence and Easing of Cryptocurrency Restrictions

The recent period has witnessed significant developments in the economic and financial landscape of the United States.
Consumer confidence has declined notably amid rising concerns over inflation and unemployment.
Meanwhile, authorities have eased restrictions on banks’ dealings with cryptocurrencies to support the financial sector.

 

Contents

 

 

 

 

Inflation

Decline in U.S. Consumer Confidence Amid Rising Inflation and Unemployment Expectations

Consumer confidence in the United States dropped for the first time in six months in January as concerns over inflation
and unemployment escalated.
According to data released by the University of Michigan on Friday,
the Consumer Sentiment Index fell by 3.9% month-over-month to 71.1 points,
compared to 74 points in December and below the preliminary reading of 73.2 points.

Additionally, the Current Economic Conditions Index declined by 1.5% to 74 points,
while the Future Expectations Index dropped by 5.5% to 69.3 points.

The data also showed that consumers’ inflation expectations for the next 12 months rose to 3.3%,
up from 2.8% in December, marking the highest level since May 2024.
Long-term inflation expectations also increased to 3.2% from 3%.

The findings indicated that new administration policies, such as imposing tariffs,
have heightened inflation concerns, prompting consumers to accelerate purchasing decisions to avoid anticipated price increases.

 

 

 

 

Cryptocurrencies

The U.S. Eases Restrictions on Banks’ Dealings with Cryptocurrencies

The U.S. Securities and Exchange Commission (SEC) has eliminated an accounting rule that required banks to treat Bitcoin and other cryptocurrencies as financial liabilities on their balance sheets.
This move aims to ease restrictions imposed on the cryptocurrency industry.

Hester Peirce, a newly appointed commissioner heading a task force to develop a comprehensive regulatory framework for digital assets within the SEC, praised the decision, emphasizing that it removes a significant obstacle for banks to engage with cryptocurrencies.

The repealed rule posed challenges for major banks,
as it increased financial and regulatory risks associated with safeguarding digital currencies and raised operational costs.
Consequently, many banks had avoided the cryptocurrency market.

This decision is part of a series of measures implemented by former President Donald Trump’s administration to facilitate the integration of digital assets into the financial sector.

 

 

Decline in Consumer Confidence and Easing of Cryptocurrency Restrictions

Cryptocurrencies Decline Amid Anticipation of a U.S. Executive Order That Could Be a Game-Changer

Cryptocurrencies Decline Amid Anticipation of a U.S. Executive Order That Could Be a Game-Changer:
Will Bitcoin See the Creation of a Strategic Reserve?

Cryptocurrencies experienced a decline during Thursday’s trading session as Bitcoin approached the $100,000 level.
This came after a significant rally in the largest cryptocurrency by market capitalization,
which followed initial U.S. steps toward easing regulatory restrictions in the crypto market.

 

Contents:

 

 

 

Bitcoin

Bitcoin fell by 1.88% to $102,361.7, while Ethereum dropped by 1.25% to $3,223.26.

In another development, “Bitwise” and several investment managers submitted an official application to the U.S. Securities and Exchange Commission (SEC) to register exchange-traded funds (ETFs) for Dogecoin.
This move came in response to the significant increase in demand for the cryptocurrency,
which is strongly backed by billionaire Elon Musk.

Meanwhile, the SEC announced on Tuesday the formation of a “Crypto Operations” team led by Acting Chairman Mark Uyeda.
This team aims to develop a comprehensive and clear regulatory framework for digital assets.

The crypto market is eagerly awaiting a potential announcement from U.S. President Donald Trump regarding a major executive order on Bitcoin and digital currencies in the coming days.
This announcement is expected to bring significant changes to cryptocurrency regulations,
potentially providing long-awaited clarity to the rules governing this sector.

 

 

 

 

Trump

Trump sparked controversy with his statements about establishing a strategic Bitcoin reserve for the United States.
This initiative aims to enable the government to retain its current Bitcoin holdings
while adding more digital currencies to its reserves over the coming years.
Reports suggest that Trump is seeking to accumulate one million Bitcoins over five years,
representing about 5% of Bitcoin’s total global supply.

Several U.S. states, such as Florida, Wyoming, and Massachusetts,
have already begun supporting this idea by introducing bills aimed at incorporating Bitcoin into their state reserves.

Experts also anticipate that the Trump administration will introduce a series of new policies to facilitate cryptocurrency investment and usage. These potential policies include supporting banks in holding digital assets securely on behalf of their clients.
Additionally, tax reforms on cryptocurrency transactions might be introduced,
such as eliminating capital gains taxes on purchases made with Bitcoin.

The future of cryptocurrencies in the United States appears to be undergoing significant transformations
that could reshape the regulatory and investment landscape of this critical sector.

 

 

 

Cryptocurrencies Decline Amid Anticipation of a U.S. Executive Order That Could Be a Game-Changer

Bitcoin May Exceed $200,000 by 2025 as Digital Assets Recover

Bitcoin May Exceed $200,000 by 2025 as Digital Assets Recover:
Jeffrey Kendrick, Head of Digital Asset Research at Standard Chartered Bank,
has predicted that Bitcoin prices could exceed $200,000 by the end of 2025.

 

Content

Bitcoin
Japan-US Trade

 

 

 

 

Standard Chartered: Bitcoin May Exceed $200,000 by 2025 as Digital Assets Recover

Jeffrey Kendrick, Head of Digital Asset Research at Standard Chartered Bank,
has forecasted that Bitcoin prices will surpass $200,000 by the end of 2025,
driven by increasing institutional investment in digital assets.
In a report cited by the
Binance Exchange, Kendrick stated that Ethereum prices might reach $10,000 within the same period.

Kendrick explained that investment entities such as pension funds and exchange-traded funds (ETFs)
would play a significant role in driving up the prices of digital assets.
He also expressed optimism about the cryptocurrency market’s recovery, supported by positive indicators,
including regulatory changes and supportive measures initiated by the U.S. government under President Donald Trump’s leadership.

Additionally, Kendrick noted that more minor digital currencies could achieve substantial gains,
benefiting from new ETF approvals and regulatory developments despite their recent performance declines.
He emphasized that institutional adoption of digital assets
would be one of the main factors boosting future growth in the cryptocurrency market.

 

 

 

 

Japan-US Trade Surplus Hits Record Levels Amid Tariff Threats

Japan’s trade surplus with the United States in 2024 surpassed the average levels recorded during President Donald Trump’s first term,
reflecting Japan’s continued export of significant quantities of goods to the world’s largest economy while importing less.

According to official data released on Thursday,
Japan’s trade surplus with the United States amounted to ¥8.6 trillion (equivalent to $54.9 billion),
far exceeding the ¥6.7 trillion average recorded between 2017 and 2020.
This increase was driven by higher automobile and auto parts exports,
along with a 7.7% depreciation of the Japanese yen compared to the previous year,
averaging ¥150.97 per dollar.

This significant trade surplus growth suggests that Japan may face potential decisions from the Trump administration.
The administration has long criticized countries with substantial
trade surpluses with the United States and threatened to impose tariffs on their imports.

On the other hand, the data showed Japan recorded
a trade deficit of ¥6.4 trillion with China during the same year,
which was the primary reason for its global trade deficit.
This highlights the global trade challenges Japan faces with its key economic partners.

 

Bitcoin May Exceed $200,000 by 2025 as Digital Assets Recover.

 

Crypto Market on Hold as Trump Skips Day-One Policies

Crypto Market on Hold as Trump Skips Day-One Policies: Bitcoin retreated from its record high as traders
awaited President Donald Trump’s cryptocurrency policies following his inauguration.

 

Content

Market Expectations

Trump Tokens

Meme Token Criticism

Details of Trump Tokens

Long-Term Potential

 

 

 

Market Expectations

The market anticipated an executive order supporting the digital asset sector,
but Trump’s first-day actions instead prioritized topics such as immigration, trade, energy, and TikTok.

Bitcoin was trading at approximately $102,400 as of 12:31 p.m.
Tuesday in Singapore after peaking at $109,241 before the inauguration.
Other digital assets also experienced fluctuations.

Richard Galvin, co-founder of the DACM hedge fund, remarked:
“It’s too early to draw definitive conclusions from the absence of an immediate executive order,
considering the Trump administration’s broad priorities.”
He added, “Markets have shown resilience, indicating investors are taking a longer-term perspective.”

 

Trump Tokens

Before the inauguration, Trump and his wife, Melania, launched meme tokens that caused market turbulence by redirecting flows.
Later, investors viewed this move as a signal that Trump might adopt crypto-friendly policies.

Bloomberg News reported that Trump is considering an executive order to classify
the digital asset sector as a “national priority.”
During his campaign, Trump transitioned into a strong supporter of digital assets despite previously calling Bitcoin a “scam.”
He pledged to establish the U.S. as the global cryptocurrency hub and supported the creation of a strategic Bitcoin reserve.

While the lack of an immediate executive order praising crypto was unexpected,
TD Cowen analyst Jaret Seiberg noted that such an order might be forthcoming, even if it’s not “substantive.”

According to CoinMarketCap, Trump’s meme token was trading at $34.
Its market cap reached over $15 billion on Sunday before plummeting below $7 billion by Tuesday.

 

Meme Token Criticism

Some industry leaders criticized Trump and Melania’s meme tokens, arguing they could undermine the cryptocurrency sector’s seriousness.

Others took a more optimistic view.
Ben El-Baz, managing director at HashKey Global,
stated that the tokens launched by Trump and his team have boosted Bitcoin’s momentum,
as retail investors expect the administration to “prioritize and reaffirm its commitment to the crypto industry.”

Meme tokens are known for their speculative nature and high volatility,
relying heavily on social media trends to boost their price.
However, they can lose value as quickly as they gain it.

 

 

 

 

Details of Trump Tokens

A Trump Organization affiliate, CIC Digital LLC, and another entity named Fight Fight Fight LLC
referencing Trump’s rallying cry after an assassination attempt grazed his ear during the campaign
collectively hold 80% of Trump tokens.
These holdings will unlock gradually over three years.

 

Long-Term Potential

According to the token’s website, 200 million tokens became immediately available,
with the supply expected to grow to one billion over three years.
The site clarifies that the token is not intended as an “investment opportunity,
investment contract, or security of any type.”

Gautam Chhugani from Bernstein noted that a meme token leveraging
Trump’s brand and political influence has “potential longevity.”
While some may criticize it,
Chhugani emphasized that this marks the beginning of a “new regulatory era for cryptocurrencies.”

Bitcoin has surged by 50% since Trump’s election win in November,
raising questions about whether this momentum can persist if anticipated presidential actions fail to meet speculators’ expectations.

 

 

Crypto Market on Hold as Trump Skips Day-One Policies

Oil and Cryptocurrencies in the Spotlight

Oil and Cryptocurrencies in the Spotlight: Sustained Gains Amid Market Volatility

Global markets are experiencing heightened activity,
with oil prices achieving gains for the fourth consecutive week due to U.S. sanctions,
while cryptocurrencies continue their upward trend amid expectations of supportive political changes.

 

Content

 

 

 

 

 

Oil

U.S. Sanctions Intensify Market Pressures

Oil prices have continued their upward streak for the fourth consecutive week, marking the longest rally since July.
This surge is fueled by growing concerns over global supply disruptions caused by U.S. sanctions on Russian oil.
West Texas Intermediate (WTI) crude rose by about 2% this week, despite dipping below $78 per barrel on Friday.

The Biden administration imposed strict sanctions on 183 Russian oil tankers,
disrupting markets and significantly increasing shipping costs.
Meanwhile, countries like China and India are seeking alternative sources of oil.
This shift comes at a time when the market is already tight, driven by cold winter weather in the Northern Hemisphere,
which has boosted fuel demand.

 

Diverging Future Outlooks

As the inauguration of President-elect Donald Trump approaches, markets are reassessing their expectations for future policies.
Reports suggest a possible easing of U.S. sanctions to facilitate a deal between Russia and Ukraine.
However, Trump has also threatened to impose tariffs on Canadian oil imports,
adding another layer of complexity to the market.

At the same time, China, the world’s largest oil importer, is grappling with mixed economic signals.
Despite meeting its government-set growth targets last year,
the transition to electric vehicles led to a 1.6% decline in oil refining volumes.
Additionally, ongoing U.S. trade tensions may further pressure China’s economy.

 

 

 

 

 

Bitcoin

Bitcoin Nears Record Levels

Cryptocurrencies, led by Bitcoin, continue to post significant gains. Bitcoin’s price rose by 4.9%, reaching $105,076.
This surge comes amid expectations that Donald Trump’s new administration will adopt supportive policies for cryptocurrencies,
fueling optimism in the market.

Since the beginning of the week, Bitcoin’s value has has increased by approximately 12%,
marking its largest weekly gain since November.
Experts believe the market is pricing in potential pro-crypto policies from the upcoming U.S. administration,
which could promote wider adoption on a national scale.

 

Factors Supporting Digital Asset Growth

Additional market support came from reassuring inflation data in the United States,
which bolstered hopes for further interest rate cuts by the Federal Reserve.
Meanwhile, XRP, linked to Ripple Labs, hit an all-time high,
fueled by expectations of a resolution in its long-standing dispute with the U.S. Securities and Exchange Commission.

Traders are betting on higher volatility by the end of January,
indicating that the cryptocurrency market may see more activity as the U.S. presidential inauguration approaches.

 

 

Oil and Cryptocurrencies in the Spotlight

Global Market Volatility: Gold, Oil, and Cryptocurrencies in Focus

Global Market Volatility: Gold, Oil, and Cryptocurrencies in Focus

The global markets are witnessing significant fluctuations, driven by renewed hopes of interest rate cuts,
rising concerns over oil supply stability, and a sharp increase in the value of cryptocurrencies, led by Bitcoin.

 

Content

 

 

 

 

 

Gold

It Prices Hold Gains Amid Renewed Rate-Cut Hopes
Gold prices extended their rally for a second consecutive day,
supported by unexpected U.S. inflation data showing a slowdown,
which strengthened expectations for further interest rate cuts by the Federal Reserve this year.

Gold traded at its highest level in a month, reaching $2,695 per ounce, after the core Consumer Price Index (CPI),
which excludes food and energy costs, rose by only 0.2%, compared to a previous four-month increase of 0.3%.
This data suggests that the U.S. central bank may have more room to ease monetary policy sooner than previously expected.

Meanwhile, U.S. Treasury yields and the dollar weakened,
enhancing gold’s appeal as a non-yielding asset and making it more affordable for international buyers.
Market expectations now point to an interest rate cut by July,
a shift from earlier predictions of September or October, following strong labor market data.

 

Fed Confidence in Inflation Decline
Federal Reserve officials expressed optimism about continued easing of price pressures,
although they warned that the fight against inflation is not yet over.
Interest rate cuts have historically been a key driver of gold reaching record highs, as seen last year.

 

 

 

 

 

Oil

It Prices Rise Amid Persistent Supply Concerns
Oil prices continued their yearly rally amid growing concerns over global supply stability,
bolstered by consecutive declines in U.S. crude inventories, marking the longest drop since 2021.

Brent crude surged to over $82 per barrel after gaining 2.6% in the previous session,
while West Texas Intermediate (WTI) crude traded near $80.

The market has been impacted by recent U.S. sanctions on Russia’s energy sector,
with the International Energy Agency (IEA) warning of potential “significant disruptions” to supply chains.
Simultaneously, buyers of Russian crude have sought alternative sources,
leading to congestion of oil tankers off the Chinese coast,
while India has accelerated payments for its current Russian imports.

 

Geopolitical Concerns Add Pressure
Geopolitical factors, including restrictions on Iran and Russia, continue to heighten supply fears.
Recent U.S. sanctions on Russian tankers have significantly reduced their activity, adding further strain to the market.

 

 

 

 

 

 

 

Bitcoin

It Surpasses $100,000 Amid Easing Inflation Concerns
Bitcoin saw a sharp rally, surpassing the $100,000 mark,
buoyed by U.S. inflation data that renewed hopes for additional interest rate cuts by the Federal Reserve.

The cryptocurrency traded at $100,420 on Thursday morning in Singapore,
after a 3% rise in the previous session.
Other digital assets, such as Ethereum and XRP,
also posted notable gains.

 

Anticipation for U.S. Policy Changes
With the inauguration of President-elect Donald Trump approaching,
attention has turned to anticipated economic policies that could support the crypto sector.
Investors are optimistic about measures such as creating a national Bitcoin reserve and initiatives to foster growth in this industry,
fueling hopes for further price increases in digital assets.

However, markets remain cautious about potential price corrections following Bitcoin’s substantial recent gains,
as observers anticipate decisive steps to bolster the digital economy from the new U.S. administration.

 

 

 

Global Market Volatility: Gold, Oil, and Cryptocurrencies in Focus

Cryptocurrency Prices Rise Amid Anticipation of U.S. Inflation

Cryptocurrency Prices Rise Amid Anticipation of U.S. Inflation Data and Trump’s Inauguration

Cryptocurrency prices saw a significant increase during Wednesday’s trading session,
driven by improved investor sentiment following a slowdown in the monthly rise of U.S. producer price inflation.
This occurred despite risk aversion ahead of the release of U.S. consumer inflation data later in the day.

 

Content

 

 

 

 

 

Bitcoin

Bitcoin rose by 0.74% to reach $97,246.09, while Ethereum gained 0.53% to $3,233.01.
Ripple recorded substantial gains of 6.65%, climbing to $2.8437.
Meanwhile, Dogecoin edged up by 0.91% to 35.96 cents.

These movements occurred as the total cryptocurrency trading volume dropped by 24.24% to $128.08 billion over the past 24 hours.
However, the overall market capitalization of digital assets increased by 2.32%,
reaching $3.39 trillion, according to “CoinMarketCap” data.

 

 

 

 

 

Inflation

Markets are closely watching U.S. inflation data, with investors awaiting the release of consumer inflation figures.
Economists expect the annual consumer price index to accelerate to 2.9% in December,
compared to 2.7% in the previous month, fueling concerns about deviating further from the Federal Reserve’s 2% target.

On the other hand, official data released on Tuesday showed a slowdown in monthly producer prices,
boosting optimism for short-term inflation moderation.
This supported the demand for cryptocurrencies as an alternative investment hedge.

 

Trump’s Inauguration and Increased Momentum

Adding to this dynamic, markets are anticipating the inauguration of President-elect Donald Trump,
who has pledged policies favorable to the cryptocurrency industry.
This has injected positive momentum into Bitcoin, potentially driving significant shifts in financial markets
with direct impacts on the digital asset space.

 

 

Cryptocurrency Prices Rise Amid Anticipation of U.S. Inflation