Bitcoin Rebounds After CPI Shock, Trading Near $97,500

Bitcoin (BTC) has bounced back from a sharp drop earlier Wednesday, briefly falling below $94,000 after the release of stronger-than-expected U.S. inflation data. The leading cryptocurrency has since recovered, climbing to $97,500.

Bitcoin outpaced most other cryptocurrencies, showing a 1.4% gain over the last 24 hours, while the broader CoinDesk 20 Index rose by just 0.5%.

During his second day of testimony before Congress, Federal Reserve Chairman Jerome Powell acknowledged that today’s CPI data showed the central bank is nearing its inflation target, though it still has work to do.

Bitcoin had reached a high of over $109,000 in the days leading up to President Trump’s inauguration on January 20 but has since followed a downward trajectory. The recent 4% recovery from the low earlier today could reflect short-sellers locking in profits.

U.S. stock markets also regained some ground, with the Nasdaq seeing a slight improvement after an earlier drop of over 1%.

A potential positive development for both the crypto and traditional markets came with President Trump’s statement about a successful phone call with Russian President Putin, discussing a potential end to the war in Ukraine, which may have lifted investor sentiment.