Bitcoin climbed back to the $95,000 level after US core CPI came in below expectations, while Ether also recovered above $3,300. The move stood out because crypto prices rose even as US equities broadly moved lower, echoing the pattern seen earlier in the previous week.
The main trigger in the source material was softer-than-expected inflation data. A lower core CPI reading led traders to price in the possibility that inflation may not be running as hot as feared, which put fresh attention on the Federal Reserve's rate path. Expectations that rates would stay unchanged in January appeared less settled, and crypto, after a weak week, posted a visible rebound.
Crypto and stocks moved in different directions
US stocks did not follow crypto higher. The source noted that while crypto had stayed under pressure over the past week, major US stock indexes had spent several sessions pushing to new highs. In that context, the pullback in equities looked more like a correction after a strong run, while crypto was bouncing after a stretch of declines. The two markets were reacting on different timing.
For the decline in equities, the source pointed to developments involving Iran. It said Trump announced support for anti-government protesters in Iran, prompting market expectations that war could be approaching. Under that reading, the geopolitical risk that had already weighed on crypto earlier was only later reflected more clearly in stocks.
PPI data and Iran remain the next focus
Attention now turns to another inflation-related release, US PPI, along with comments expected from multiple Federal Reserve officials. That setup leaves room for more volatility in the near term. At the same time, traders are still watching the Iran situation closely rather than looking only at macro data.
According to the source, if the US or Israel were to confirm military action against Iran, crypto could also face a pullback despite the current rebound. If the situation became clearer after that, prices could bounce again. For now, inflation data and geopolitical tension are both shaping short-term moves across the crypto market.