Bitcoin rose sharply on Jan. 14, 2025, surpassing $97,000 after several weeks of underperformance.
Bitcoin rose sharply on Jan. 14, 2025, surpassing $97,000 after several weeks of underperformance. The cryptocurrency climbed by over 6% within 24 hours, reaching $97,554. This recovery came as global equity markets also gained, driven by expectations of important U.S. inflation data. Stock futures in the U.S. were higher, with the Nasdaq rising 0.70%, the S&P 500 up 0.50%, and the Dow Jones gaining 0.31%. Europe also saw positive movement, with Germany’s DAX climbing 0.6% and France’s CAC 40 up by almost 1%.
Altcoins like Ethereum, XRP, Solana and Dogecoin followed Bitcoin’s lead, with noticeable gains across the board. QCP Capital analysts noted increased volatility in derivatives markets, and data from Deribit showed significant interest in Bitcoin’s $99,000 strike price. The put-call ratio for Bitcoin options on Deribit was at 0.57, indicating a slightly bullish sentiment.
Bitcoin’s rise was partially fueled by the upcoming release of key U.S. economic data, including the Producer Price Index (PPI) and Consumer Price Index (CPI), which investors see as crucial to Federal Reserve policy decisions. Futures markets forecast a 97.3% chance that the Fed will hold interest rates steady at its meeting on Jan. 29. Meanwhile, U.S. Treasury yields have surged, with 10-year yields recently hitting 4.8%, reflecting rising expectations for interest rate hikes. Higher yields could limit liquidity for Bitcoin.
The potential impact of Donald Trump’s upcoming inauguration on Jan. 20 also brings attention to the cryptocurrency market. There has been speculation that Trump could introduce policies favorable to digital assets, but analysts have cautioned about the possible risks. Some, like BRN’s Valentin Fournier, recommended reducing exposure to cryptocurrencies ahead of the event.
Despite some caution in the market, Bitcoin bull Tom Lee predicted that Bitcoin could hit $200,000 to $250,000 by the end of the year. However, he warned that the cryptocurrency could face pullbacks if it fails to maintain support around $70,000. As Bitcoin hovers near $96,900, market participants remain focused on inflation data, Fed actions, and broader economic conditions that may influence market sentiment.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
