Bitcoin experienced a 4.5% increase in value, reaching $97,044, after falling below $90,000 earlier in the week. The broader crypto market also saw a rise, with the CoinDesk 20 index climbing 3.9%. The increase in value came after new inflation data indicated a cooling economy, triggering a risk-on rally in both cryptocurrencies and equities. Stocks related to cryptocurrency, such as Coinbase and MicroStrategy, also experienced gains. The Bureau of Labor Statistics reported lower-than-expected inflation numbers, sparking optimism among investors and driving demand for growth-oriented assets like Bitcoin. However, the bond market showed a different reaction, with the yield on the 10-year Treasury increasing to its highest level in 14 months. Factors contributing to the bond market's response include the increase in public debt, uncertainty surrounding Donald Trump's presidency, and term premiums reaching their highest levels since the pandemic. Despite the volatility, Bitcoin remains popular among risk-seeking investors, and some experts, like Tom Lee of Fundstrat, maintain a bullish long-term outlook for the cryptocurrency. Analysts anticipate continued volatility in the crypto market as inflation data and fiscal policies send mixed signals.



Other News from Today