Bitcoin Soars to Weekly High of $97,350 as Wholesale Inflation Data Cools

Leading cryptocurrencies charged higher Tuesday amid softer-than-expected wholesale inflation data. Bitcoin soared to a weekly high of $97,350 early this morning, holding on to its gains for the remainder of the day.

Bitcoin, Ethereum Lead Crypto Recovery Amid Cooling Wholesale Inflation DataLeading cryptocurrencies charged higher Tuesday amid softer-than-expected wholesale inflation data.

What Happened: BTC soared to a weekly high of $97,350 early this morning, holding on to its gains for the remainder of the day.

The dramatic turnaround comes just a day after the leading cryptocurrency slipped below $90,000 for the first time since November 2024.

ETH, the second-largest cryptocurrency, also recovered from Monday’s losses, reclaiming the $3,200 zone a day after dipping below $3,000.

About $185 million were liquidated from the cryptocurrency market in the last 24 hours, with bearish bets accounting for $122 million, according to data from Coinglass.

The percentage of Binance traders going long on Bitcoin dipped from 62% to 55% in the last 24 hours, suggesting that the market was bracing for another correction.

The "Greed" sentiment strengthened from 63 to 70 in the last 24 hours, according to the Crypto Fear & Greed Index.

Top Gainers (24-Hours)

The global cryptocurrency market capitalization stood at $3.36 trillion, rising by 2.77% in the last 24 hours.

Major stock indexes moved north on Tuesday. The Dow Jones Industrial Average rose 221.16 points, or 0.52%, to 42,518.28. The S&P 500 gained 0.11% to close at 5,842.91. The tech-focused Nasdaq Composite was the outlier, ending 0.23% lower at 19,044.39.

The rise followed cooler-than-expected Producer Price Index data for December. Focus shifts to the all-important Consumer Price Index report, due for release on Wednesday, as investors look for signals about whether the Federal Reserve may soften its interest rate policy.

See More: Best Cryptocurrency ScannersAnalyst Notes: Widely followed cryptocurrency analyst Rekt Capital noted the importance of Bitcoin’s daily close above $91,000.

"The $91000-$101000 range and early-stage higher low on the RSI have been preserved," the analyst remarked. "The exaggerated bullish divergence remains intact."

Another popular cryptocurrency trader, Michaël van de Poppe, expressed optimism that sentiment toward altcoins (coins other than Bitcoin) would shift starting this week.

"I'm confident the sentiment and climate for #Altcoins is going to shift from these weeks onwards," van de Poppe said.

"The sentiment, in a negative manner, has gone through new roofs, people are expecting the bull market to be over. The ideal climate for altcoins to perform well."