Bitcoin has been on a roller coaster price swing in the past week. Bitcoin price dropped to a two month low below $90,000 on January 13th, 2025 to ring in the new year. In typical price swing action, the price of bitcoin has risen above $100,000 just two days later.
“Bitcoin is up today because both yesterday’s producer price index and today’s consumer price index were relatively moderate,” said Zach Pandl, head of research at digital asset manager Grayscale. “It raises confidence about disinflation in the economy and the likelihood of Fed rate cuts this year.”
The rise in price can also be attributed to the upcoming inauguration of Donald J. Trump on January 20th, 2025. Many are anticipating Trump to sign a day 1 executive order to establish a strategic bitcoin reserve.