Bitcoin continued to rise tonight, with buying returning during the US traditional financial market open hours, pushing the price to a nearly two-month high again.

Interestingly, even though the US Producer Price Index (PPI) and core PPI for November were both released at 3%, well above the market expectation of 2.7%, Bitcoin stubbornly held its upward momentum. Normally, a jump in inflation data would lead central banks to consider tightening policies, which typically reduces market liquidity and puts pressure on cryptocurrencies and other risk assets.

Tom Graff from the Facet investment team mentioned that if the PPI data ultimately reflects in the Core Personal Consumption Expenditures (Core PCE) index, it could signal a resurgence of inflation, posing a test for the Federal Reserve. The question is, after the data was released, Bitcoin bulls were hardly shaken.

Why? Industry insiders point out that the market had already digested the expectation that the Federal Reserve would pause rate hikes in January, so this surprise PPI data did not significantly impact investors' risk appetite. Another more critical signal is that Bitcoin ETF saw its largest single-day net inflow in nearly three months on Tuesday. This indicates that after the year-end portfolio adjustments, institutional funds are making a major return to risk assets.

SoSoValue data vividly reflects this—US spot Bitcoin ETF experienced a net inflow of $753.7 million on that day, the highest since October 7. Leading institutions like Fidelity and others' related products were the main drivers.