PPI Data Comes as a Timely Boost, Bitcoin Surges Past $96,000
TechFlow Selected TechFlow Selected
PPI Data Comes as a Timely Boost, Bitcoin Surges Past $96,000
Derivatives market data indicates that the volatility of Bitcoin and other cryptocurrencies is expected to continue rising.
Navigating Web3 tides with focused insightsArticle: BitpushNews
Following the release of U.S. Producer Price Index (PPI) data, Bitcoin continued its rebound, rising above $96,000 with a 2.5% gain over the past 24 hours. Among major altcoins, XRP and DOGE led gains with increases of 6% to 7%.
The report showed that the U.S. PPI for December rose only 0.2% month-on-month, below the previous month's 0.4% increase and also under economists' consensus forecast of 0.4%. As a leading indicator for the Consumer Price Index (CPI), PPI plays a significant role in assessing overall inflation levels. The cooling PPI is seen as a positive signal for the Federal Reserve’s next policy move.
A day earlier, The Washington Post reported that sources close to President-elect Trump’s incoming administration indicated he would issue executive orders related to cryptocurrency shortly after taking office. These orders are expected to address the so-called "debanking" issue and reverse the controversial SAB 121 policy, which restricts banks from providing services to crypto firms.
Crypto billionaire and Galaxy Digital founder Mike Novogratz previously stated that SAB 121 was one of Joe Biden-era policies that would be swiftly repealed under Trump’s return to power.
The Washington Post further reported that Trump is willing to support a pro-crypto legislative strategy early in his presidency, influenced by a group of Silicon Valley tycoons including A16Z general partner Marc Andreessen. Following this news, the crypto market surged immediately.
Derivatives Market Indicators Signal Volatility
Data from derivatives markets suggest that volatility in Bitcoin and other cryptocurrencies is likely to continue rising. Short-term implied volatility for Bitcoin options remains elevated, while the VIX index—measuring equity market volatility—also stays at high levels, indicating increased overall market uncertainty.
According to Deribit data, the first Bitcoin options expiry date of the year falls on January 24, two days after Trump’s inauguration. Market sentiment toward this event appears slightly bullish, with relatively strong demand for call options. The most concentrated strike price for call options is at $99,000. Analysts at QCP Capital believe that derivatives data indicate ongoing market volatility throughout January.
K33 Research had previously predicted that inauguration day might present a favorable selling opportunity, but recent declines in both stock and digital asset markets have prompted it to revise this view. The firm noted that while the appeal of selling on inauguration day has diminished, traders should still closely monitor price action in the coming week. It stated: "While our prior monthly outlook leaned toward selling on inauguration day, the attractiveness of this strategy has significantly declined given that both equities and Bitcoin have recently hit two-month lows. The S&P 500 filled its post-election gap yesterday, and Bitcoin reached a two-month low. Any de-risking moves will depend entirely on next week’s price action and will likely be short-lived, as we remain optimistic about Trump’s long-term impact on BTC."
Crypto research firm 10x Research said in a report that “lower-than-expected inflation data could trigger a rally in Bitcoin” amid the Fed’s ongoing assessment of inflation trends.
Geoffrey Kendrick, Head of Digital Asset Research at Standard Chartered, said in a research report on January 14 that Bitcoin is currently under pressure from macro risks, but any pullback below $90,000 would represent a “medium-term” buying opportunity.
The report added: “If we do indeed retest that level (and if below $90,000, I expect a drop below $80,000), I would view it as an excellent medium-term buying opportunity.” Despite short-term risks, Standard Chartered reiterated its long-term price target of $200,000 for Bitcoin by the end of 2025.
Crypto traders should already be accustomed to sharp short-term pullbacks during bull markets, Fundstrat co-founder Tom Lee said on CNBC’s “Squawk Box,” adding that Bitcoin could correct down to $70,000 before reaching new highs and ultimately climbing to between $200,000 and $250,000 by year-end.
Join TechFlow official community to stay tuned
Telegram:https://t.me/TechFlowDaily
X (Twitter):https://x.com/TechFlowPost
X (Twitter) EN:https://x.com/BlockFlow_News
比推 BitpushNews
