Bitcoin Breaks Above $96,000 Again, in Surprising Reversal, as Weak Inflation Data Stokes Risk Appetite

bitcoin rebounded on Tuesday, rising with other risk assets as traders digested a slight inflation reading.

On Tuesday, the price of the flagship cryptocurrency rose 4% to $96,781.15, according to Coin Metrics, after falling below the $90,000 support level at the start of the week. The broader crypto market, measured by the CoinDesk 20 index, added 3.9%.

Actions of Coinbase and Microstrategy they gained more than 3% and 5%, respectively. Mining stocks Mara Holdings and Scientific core increased by approximately 5%.

The measure comes as reported by the Bureau of Labor Statistics. inflation colder than expected Tuesday. The producer price index, which measures wholesale inflation, rose just 0.2% in December, while economists surveyed by Dow Jones had estimated a 0.4% increase.

Cryptocurrency prices are caught in a tug of war between investor concerns about rising inflation under the incoming Donald Trump administration and optimism about the president-elect’s pro-crypto leadership, which could significantly support the industry this year. As a result, traders are expecting a busier-than-expected January, which could extend into the entire quarter.

Bitcoin plunged last week after better-than-expected payroll numbers sparked a rise in bond yields, prompting investors to dump growth-oriented risk assets. Headlines about Trump’s tariff plans also spooked investors, giving a boost to the dollar, which has an inverse relationship with bitcoin.

Fundstrat’s Tom Lee told CNBC “Squawk Box” Monday that bitcoin could correct to $70,000 before breaking new records and finally ending the year between $200,000 and $250,000. Cryptocurrency traders are used to sharp declines in bitcoin during a bull market.

Bitcoin is 10% below its December 17 record. It has increased by 3% in 2025.