Bitcoin spiked to about $97,000 at Wednesday’s Wall Street open, reaching fresh eight-week highs as markets reacted to higher-than-expected November inflation data. Traders pushed the cryptocurrency higher even while US stock markets diverged following the inflation surprise.
Data from TradingView showed BTC/USD rebounding after a prior consolidation. Buying resumed during US trading hours, lifting prices above recent resistance.
The Bureau of Labor Statistics reported PPI and core PPI at 3% for November, versus an expected 2.7%. “The November increase in prices for final demand can be traced to a 0.9-percent advance in the index for final demand goods. Prices for final demand services were unchanged,” the statement said.
Higher PPI implies tighter Federal Reserve policy and reduced liquidity for risk assets, observers noted. The Kobeissi Letter wrote that PPI reached its highest level since July 2025 and warned the Fed may pause rate cuts soon; “PPI inflation is now up to its highest level since July 2025. The Fed will PAUSE rate cuts in 2 weeks,” it said.
Market odds for the January meeting shifted, according to the CME Group FedWatch Tool. The Supreme Court did not issue a ruling on international trade tariffs as expected (Ed. note: the court’s ruling schedule is not disclosed in advance).
Trader Rekt Capital said BTC must close the weekly candle above $93,500 to mirror prior rebounds, adding, “Bitcoin will need to simply hold above $93500 heading into the new Weekly Close. History suggests a retest of $93500 into new support could also be on the cards.” Last April, BTC briefly fell below $75,000 amid tariff news before rallying roughly 50% in subsequent weeks.
