Bitcoin reaches $102K despite inflation data shock and market concerns

Bitcoin (CRYPTO:BTC) price surged to nearly $102,000 on December 12, nearing new all-time highs despite a surprising inflation report from the US.

The Bitcoin bulls were undeterred by the Producer Price Index (PPI) for November, which surpassed expectations at 3.0%, hinting at potential stagflation.

Bitcoin's price momentum continued to rise, fueled by large-volume traders, commonly known as whales, who absorbed sell-side liquidity.

According to data from Cointelegraph Markets Pro and TradingView, Bitcoin built on previous gains, including a $5,000 increase in a single day.

Material Indicators highlighted the return of whale-sized market orders, noting that whales could now make larger market orders with minimal slippage, as liquidity had increased.

However, popular trader Skew cautioned that strong sell-side pressure could limit Bitcoin's potential price rise.

“As long as passive buyers continue to slurp we break up eventually,” he explained.

On the other hand, on-chain data from The Bitcoin Researcher pointed to concerns about Bitcoin's short-term holder profitability, using the MVRV metric to track the market value of Bitcoin held by short-term holders.

“A rising price without STH-MVRV reset often signals an impending market top,” the researcher suggested.

While inflation data showed a rise in the PPI, Bitcoin remained unaffected by the news.

The latest PPI report marked a shift from the previous Consumer Price Index (CPI), which had met forecasts.

The surprising inflation data raised concerns about stagflation, as the combination of rising inflation and weak labor markets could create economic challenges.

At the time of reporting, the Bitcoin (BTC) price was $99,615.01, ranked #1.