Bitcoin price tags $97K despite high producer price inflation, no US tariff ruling

💡 DMK Insight

Bitcoin’s push to eight-week highs is a significant divergence from US stock markets, and here’s why that matters: The recent higher-than-expected Producer Price Index (PPI) data has rattled equities, but Bitcoin is showing resilience. This could indicate a growing appetite for crypto as a hedge against inflation, especially if traditional markets continue to falter. Traders should keep an eye on the $35,000 resistance level; a solid break above could trigger further bullish momentum. Conversely, if Bitcoin fails to maintain its upward trajectory, it might face a quick pullback, especially if the PPI data leads to tighter monetary policy expectations. It’s also worth noting that this divergence could attract institutional interest in Bitcoin as a non-correlated asset, potentially leading to increased buying pressure. However, traders should be cautious of overextending positions, as volatility is likely to remain high amid macroeconomic uncertainties. Watch for any shifts in sentiment around the upcoming economic indicators, as they could impact both Bitcoin and correlated assets like Ethereum.