Bitcoin's price movement today is largely influenced by the anticipation of upcoming U.S. consumer inflation data and the potential impact of Donald Trump's inauguration. Investors are closely watching the inflation figures, expected to be released on Wednesday, as they could signal a shift in the Federal Reserve's monetary policy. A lower-than-expected inflation rate might provide a boost to Bitcoin and other cryptocurrencies, which have been under pressure due to expectations of a more hawkish Fed stance. Additionally, Trump's inauguration is generating interest in the crypto market, given his pro-crypto campaign promises and recent appointments that suggest a favorable regulatory environment for digital currencies.
Despite recent volatility, Bitcoin has shown resilience by holding above key support levels. Technical analysis indicates that Bitcoin is maintaining a crucial support level at $90,100, which has not been breached since December. This suggests that bears are cautious about shorting below this level, and there is ongoing accumulation as indicated by rising accumulation and distribution metrics. The market is also buoyed by continued interest from companies like MicroStrategy, which are actively purchasing Bitcoin, adding to the positive sentiment.
Bitcoin's price has increased by 0.95% today, reaching a high of $95,406.55.