Dogecoin, XRP Lead Crypto Market Rebound as Bitcoin Climbs Above $96K Ahead of Key Inflation Data

The cryptocurrency market is showing strong signs of recovery, with Bitcoin surging past $96,000 and altcoins like Dogecoin (DOGE) and Ripple (XRP) leading the way. Traders are closely monitoring the upcoming U.S. Consumer Price Index (CPI) report and other major economic events, including Donald Trump’s inauguration, for clues about future price movements.

What to Know

• Bitcoin’s Bounce Back: Bitcoin (BTC) rose to $96,500, recovering from Monday’s dip below $90,000, spurred by softer-than-expected U.S. Producer Price Index (PPI) data.
• Altcoin Leaders: XRP and Dogecoin led gains among major cryptocurrencies, with 6%-7% price increases over the past 24 hours.
• Key Catalysts Ahead: Wednesday’s U.S. CPI report and Donald Trump’s inauguration on January 20 are anticipated to inject volatility into crypto markets.

Bitcoin’s Strong Recovery Driven by U.S. PPI Data

After a sharp sell-off on Monday that saw Bitcoin drop below the $90,000 mark, buyers quickly stepped in amid reports of potential pro-crypto executive orders from Donald Trump. The bounce gained momentum as the U.S. Producer Price Index (PPI) for December came in softer than expected, easing inflation concerns and boosting market sentiment.

Bitcoin surged to $97,300 before settling at $96,500, marking a 3% increase over the past 24 hours. 

XRP and Dogecoin Take the Spotlight

Among the altcoin leaders, Ripple’s XRP and Dogecoin (DOGE) posted notable gains, rising 6%-7% in the same timeframe. The performance highlights growing confidence in alternative cryptocurrencies as the market recovers from recent volatility.

Traditional Markets Remain Flat

In contrast to the crypto market’s resurgence, traditional financial markets were relatively subdued. The Nasdaq and S&P 500 closed nearly flat, reflecting ongoing concerns about high bond yields and the strong U.S. dollar.

Key Events to Watch

• U.S. Consumer Price Index (CPI) Report:
  Scheduled for release on Wednesday, the CPI report is expected to provide deeper insights into inflation trends and influence the Federal Reserve’s monetary policy. A hotter-than-expected reading could lead to renewed market volatility.
• Donald Trump’s Inauguration (January 20):
  Market anticipation is building around the inauguration of Donald Trump, with expectations of pro-crypto executive orders that could further boost market sentiment.

K33 Research Revises Market Outlook

K33 Research, which previously projected a “sell-the-news” event around Trump’s inauguration, has softened its stance following the early-year sell-off in both crypto and traditional markets.

The firm noted in its latest report:

“Selling BTC at the inauguration is considerably less appealing unless the coming six days offer a substantial resurfacing of momentum.”

While Bitcoin and the S&P 500 recently hit key lows, K33 remains bullish on the long-term impact of Trump’s policies on cryptocurrency markets.

---

Bitcoin Consolidates Above $90,000 Amid Global Economic Uncertainty

Zooming out, Bitcoin remains in a sideways consolidation pattern, hovering above the $90,000 support level despite recent global economic turbulence. Rising bond yields and a strong U.S. dollar have added pressure to risk assets, including cryptocurrencies.

What’s Next for the Crypto Market?

With critical economic data and Trump’s inauguration on the horizon, the next few days are likely to shape market sentiment. Key factors to watch include:

• Inflation Trends: CPI data will play a pivotal role in setting market expectations for Federal Reserve policy.
• Regulatory Developments: Any pro-crypto announcements from Trump could further fuel Bitcoin’s rally.
• Market Sentiment: Continued momentum in altcoins like XRP and DOGE could signal broader recovery across the crypto space.