Bitcoin reclaims $95,000 within 2 months as US CPI data drives rebound

Source: DecenterKorea Original Title: Bitcoin recovers to $95,000 after 2 months… US CPI slowdown impacts [Decenter Market] Original Link:

According to data from domestic cryptocurrency exchanges at 8:00 AM on January 14, Bitcoin(BTC) increased by 4.6% within 24 hours, reaching 1.4078 billion Korean Won.

Bitcoin surged by 5% from the previous day, breaking the $95,000 mark for the first time in two months. Ethereum(ETH), the second-largest cryptocurrency by market cap, also rose by 8%. This upward trend was mainly driven by the US Consumer Price Index(CPI) being lower than market expectations, boosting market expectations for the Federal Reserve(Fed) to cut interest rates.

According to data from global cryptocurrency market websites, at 8:00 AM on January 14, BTC increased by 4.88% compared to 24 hours earlier, with a trading price of $95,631.96. This is the first time since November last year that BTC has broken through $95,000.

Ethereum rose by 7.58%, trading at $3,329.35. XRP increased by 5.81% to $2.172, and a major exchange coin rose by 4.46% to $945.78.

The domestic market trend is similar. Domestic exchange data shows that BTC increased by 4.6% over 24 hours to 1.4078 billion Korean Won. ETH rose by 7.24% to 490.1 million Korean Won, and XRP increased by 5.61% to 3,200 Korean Won.

The strong performance of cryptocurrencies is mainly driven by the US December CPI data. The data was below expectations, fueling market expectations of inflation slowing down. As the prospect of the Federal Reserve more actively cutting interest rates spreads, cryptocurrency investment sentiment has also improved. According to the US Bureau of Labor Statistics, the core CPI in December last year rose by 2.6% year-on-year, below Bloomberg’s expected 2.7%. The month-on-month increase was 0.2%, also lower than the expected 0.3%. The Federal Reserve will hold a Federal Open Market Committee meeting on January 27-28 to discuss the possibility of the first rate cut of the year.

The fear and greed index from a cryptocurrency data analysis firm dropped by 1 point to 26, indicating a “fear” state. The closer the index is to 0, the more pessimistic the investment sentiment; the closer to 100, the more overheated the market.