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Clara Montgomery
Bitcoin Price Rebounds to $97,500 Despite Inflation Woes
Bitcoin (BTC) has rebounded to $97,500 after initially declining to $94,000 due to stronger than expected U.S. inflation data. Federal Reserve Chairman Jerome Powell’s comments suggest that inflation concerns persist, while encouraging developments in U.S. stock markets and diplomatic communications are positively impacting market sentiment.
Bitcoin (BTC) demonstrated resilience as it rebounded from earlier lows, climbing to approximately $97,500 after a disappointing U.S. inflation report. Initially, the cryptocurrency had dipped to about $94,000 amid rising inflation concerns, with shorts seemingly taking profit. Bitcoin’s increase stands out, leading a 1.4% rise against the 0.5% gain of the broader CoinDesk 20 Index.
Federal Reserve Chairman Jerome Powell’s testimony before Congress indicated that while the Consumer Price Index data showed progress, the central bank has not yet fully addressed inflation concerns. Notably, Bitcoin’s price reached a high of over $109,000 shortly before President Trump’s inauguration, but has since trended downward. The recent 4% increase from the morning’s low may reflect profit-taking by bearish investors.
In parallel, U.S. stock markets have also rallied from earlier declines, with the Nasdaq recovering from a dip of over 1%. Contributing to the positive sentiment in both cryptocurrency and traditional markets is President Trump’s announcement regarding a productive conversation with Russian President Putin about the war in Ukraine, suggesting a potential easing of tensions.
In summary, Bitcoin’s price recovery follows a poor inflation report, with the cryptocurrency rebounding as investors possibly take profits. Federal Reserve Chairman Powell’s remarks during congressional testimony added to the notion that inflation remains a pressing issue. Furthermore, improving conditions in the stock market, alongside geopolitical developments, have infused optimism into the broader economic landscape.
Original Source: www.coindesk.com
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