Bitcoin retained its position near $25,000 on March 16 as it attempted to break toward the week’s highs, despite a surging U.S. dollar combined with banking crisis contagion.
BTC reacts to US PPI
Data from CoinMarketCap showed BTC/USD recovering from a 24-hour drop to reach a high of $25,001 on March 16.
The pair responded well to the latest United States Producer Price Index (PPI) data, which was much lower than expected.
Before the release of the data, bitcoin’s principal bid and ask liquidity stood at $22,000 and $26,000, respectively.
The U.S. PPI joined the Consumer Price Index (CPI) data that was released before, which saw BTC shoot to a 9-month high.
Credit Suisse shares soared over 30% on March 16 after the bank said it would borrow up to $54 billion from the Swiss National Bank.
Dollar climbs, despite declining inflation
The surging U.S. dollar strength saw cryptocurrency prices struggle to keep up on March 16.
The U.S. Dollar Index (DXY) reached 105 for the first time since the collapse of Silicon Valley Bank on March 1, despite declining inflation and better conditions for risk assets.
DXY measures the strength of the U.S. dollar against other major currencies.
Market commentator tedtalksmarco blamed the rise in DXY despite declining inflation on Europe’s banking troubles.