Bitcoin (BTC-USD) defied traditional market logic on Wednesday, as the digital asset spiked to $97,000 shortly after the Wall Street open. While higher-than-expected inflation data typically sends risk assets lower, Bitcoin broke away from the falling stock market. This move was supported by a temporary reprieve from the U.S. Supreme Court, which held off on a major ruling regarding international trade tariffs that many investors feared would disrupt global liquidity.
Why the Inflation Data Didn’t Sink BTC
Normally, when inflation data like the PPI comes in high (3% vs the expected 2.7%), it signals that the Federal Reserve might keep interest rates high for longer. High rates usually hurt risk-on assets like Bitcoin.
However, the market had already anticipated a pause in rate changes for the upcoming January 28 meeting. As noted by the trading resource The Kobeissi Letter, “PPI inflation is now up to its highest level since July 2025. The Fed will PAUSE rate cuts in 2 weeks.” Because this pause was already expected, the bad news didn’t have the power to stop Bitcoin’s upward momentum.
Investors Should Watch the Supreme Court’s Ruling on Trump’s Tariffs
One of the biggest clouds hanging over the market this week was a potential ruling from the Supreme Court on President Trump’s international trade tariffs. Investors were worried that a sudden ruling could roil the bond market or cause a sudden shift in the value of the U.S. Dollar. Since the court did not release a ruling on Wednesday, that uncertainty remains unresolved, allowing Bitcoin to trade based on its own internal strength rather than external political shocks.
Monitor the $93,500 BTC Price Level
For the rally to be more than just a temporary spike, experts say the weekly close is everything. Analyst Rekt Capital pointed out that Bitcoin needs to stay above $93,500, the level where the 2025 year opened, to prove it is in a real bull market. He explained to followers that “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.” If it holds this level, it could mirror the massive 50% gains seen in previous cycles like April 2025.
At the time of writing, BTC is sitting at $97,349.98.
