In brief
- Bitcoin rose above $93,000 on Tuesday with trading volume jumping 20% to $88.9 billion.
- Prediction markets show an 80% probability BTC will reach $100,000 despite defensive trader sentiment.
- Analysts cite deteriorating spot CVD indicating seller dominance as the Supreme Court weighs Trump tariff decision.
Bitcoin has reclaimed $93,000 for the first time in nearly a week, rising more than 2% in the past 24 hours.
Earlier this morning, the U.S. reported that consumer prices rose 0.3% in December. In the past year, consumer prices have risen 2.7%, according to the new data from the Bureau of Labor Statistics, with the rate remaining steady from the previous month.
At the time of writing, Bitcoin was changing hands for $93,406, according to crypto price aggregator CoinGecko. Volume in the past day has increased substantially, climbing 20% to $88.9 billion, according to on-chain analytics platform CoinGlass.
Users on Myriad, a prediction market platform owned by Decrypt parent company Dastan, are as optimistic as they’ve ever been that Bitcoin will regain $100,000. The prediction market, which was published in late November, now shows an 80% probability that BTC will keep climbing to six figures rather than fall back to $69,000.
Trading volume for Bitcoin has returned, but it’s not necessarily a sign that investors are expecting a big surge, wrote Glassnode analysts in a report Monday.
“Trading volume has rebounded modestly from cycle lows, pointing to early signs of liquidity rebuilding,” the analysts wrote, “however spot CVD has deteriorated, signaling rising sell-side dominance and a more defensive near-term posture.”
CVD refers to the cumulative volume delta, which tracks whether buyers or seller are being more aggressive over time. When BTC buyers dominate, CVD rises; and when sellers dominate, the metric falls.
So even though volume has been on the rise, trader sentiment hasn’t risen with it. For example, the Crypto Fear & Greed Index has improved slightly from Extreme Fear a month ago, but was still at a Fear rating on Tuesday.
Analysts at Singapore-based digital asset manager QCP Capital flagged that after Tuesday morning’s Consumer Price Index reading, investors will now look to see how the U.S. Supreme Court rules on President Donald Trump’s tariff policies.
The court has been asked to decide whether the president’s trade policies are illegal and could issue a decision as soon as Wednesday. In the past, Trump’s tariff announcements have set of waves of volatility for equities and crypto markets.
Regardless of how the court rules, it “could further influence cross-asset positioning and risk sentiment,” the QCP analysts wrote.
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