Today's Bitcoin Performance: Rallies above $95,000 Despite Cautious Trading Sentiment

 

Bitcoin rises on Tuesday (Jan. 14), sweeping away Monday's declining trend, though investors remained cautious ahead of the US inflation report.

 

On Monday, Bitcoin dropped to a low of $89,664.8 and was pushed back by dip buyers.

 

On the macro level, Bitcoin traders are cautious ahead of Wednesday's (Jan. 15) US Consumer Price Index (CPI) release, as they need the inflation data to assess the Federal Reserve's interest rate strategy.

 

The Fed hinted at fewer rate cuts last December, enhancing the market's sensitivity to inflation data.

 

Higher-than-expected inflation data can make the Fed more inclined to cut rates less often. Bitcoin and other cryptocurrencies can receive additional downward pressure, as high interest rates usually strengthen the dollar and weaken liquidity in financial markets.

 

The recent release of strong December employment data has raised more concern that the Fed will not cut rates in the near future.

 

At the corporate level, the CEO of Tether, the world's largest stablecoin issuer, said the company planned to move its headquarters to El Salvador. The move matches El Salvador's vision to be a center for cryptocurrency trading.

 

Tether has strengthened its leadership in the stablecoin market through a structure where traditional currencies are tied to a digital currency. This structure enables users to transfer funds between cryptocurrencies without being affected by price fluctuations.

 

El Salvador has always been friendly to digital currencies. In 2021, President Nayib Bukele's record-breaking declaration of Bitcoin and the dollar as legal tender boosted the country's reputation as a crypto-friendly country.

 

 

Bitcoin $BTC, the world's No. 1 cryptocurrency, rose 1.90% to $95,341.5.

 

The world's No. 2 cryptocurrency, Ether, dipped 0.48%.

 

The world's third cryptocurrency, XRP, was up 2.88%.

 

Among meme tokens, Dogecoin $DOGE climbed 4.98%.