The anticipation surrounding the U.S. Consumer Price Index (CPI) data release has been a significant driver of Bitcoin's price movement today. The cryptocurrency market is showing signs of recovery, with Bitcoin rebounding past the $97,000 mark. Analysts attribute this to softer-than-expected inflation data from the U.S., which has helped pause the recent surge in U.S. Treasury bond yields, thereby boosting investors' appetite for riskier assets like Bitcoin. However, the market remains cautious as traders await the CPI data, which could introduce volatility and influence the Federal Reserve's interest rate decisions. Additionally, the stablecoin supply has stalled, indicating a lack of fresh capital inflows, which could pose a risk to the sustainability of Bitcoin's recent gains.
The ProShares Bitcoin Strategy ETF (BITO) experienced a slight uptick, rising 0.47% to $23.55 as of 5:20 AM on Wednesday, January 15.