Cryptocurrency Prices Rise Amid Anticipation of U.S. Inflation Data and Trump’s Inauguration

Cryptocurrency prices saw a significant increase during Wednesday’s trading session,
driven by improved investor sentiment following a slowdown in the monthly rise of U.S. producer price inflation.
This occurred despite risk aversion ahead of the release of U.S. consumer inflation data later in the day.

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Bitcoin
Inflation

Bitcoin

Bitcoin rose by 0.74% to reach $97,246.09, while Ethereum gained 0.53% to $3,233.01.
Ripple recorded substantial gains of 6.65%, climbing to $2.8437.
Meanwhile, Dogecoin edged up by 0.91% to 35.96 cents.

These movements occurred as the total cryptocurrency trading volume dropped by 24.24% to $128.08 billion over the past 24 hours.
However, the overall market capitalization of digital assets increased by 2.32%,
reaching $3.39 trillion, according to “CoinMarketCap” data.

Inflation

Markets are closely watching U.S. inflation data, with investors awaiting the release of consumer inflation figures.
Economists expect the annual consumer price index to accelerate to 2.9% in December,
compared to 2.7% in the previous month, fueling concerns about deviating further from the Federal Reserve’s 2% target.

On the other hand, official data released on Tuesday showed a slowdown in monthly producer prices,
boosting optimism for short-term inflation moderation.
This supported the demand for cryptocurrencies as an alternative investment hedge.

Trump’s Inauguration and Increased Momentum

Adding to this dynamic, markets are anticipating the inauguration of President-elect Donald Trump,
who has pledged policies favorable to the cryptocurrency industry.
This has injected positive momentum into Bitcoin, potentially driving significant shifts in financial markets
with direct impacts on the digital asset space.

Cryptocurrency Prices Rise Amid Anticipation of U.S. Inflation

Cryptocurrency Prices Rise Amid Anticipation of U.S. Inflation

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