Americas Crypto Daybook: XRP and AI Tokens Poised for Significant Gains Amidst Bitcoin Stagnation Ahead of Key CPI Report

By Omkar Godbole (All times ET unless otherwise stated) The US economic landscape is set to witness its first major event of 2025: the release of December's CPI data. With concerns about a hawkish Fed stance and bitcoin's strengthening correlation with tech stocks, Wednesday's report takes on added significance for the digital assets market. The stalled liquidity inflows via stablecoins have raised questions about the sustainability of the price recovery from under $90K, prompting traders to prepare for potential downside volatility by adding short-dated puts. Here's what experts are saying about the upcoming event: QCP Capital "Caution prevails in crypto, evident in BTC options flows, with puts rolled below the key $90k support. Front-end vols and flies remain elevated, while the VIX stays high at 18.68, indicating persistent volatility through January." Geoffrey Chen, author of the Fidenza Macro blog "The upswing in markets during November and the easing of election uncertainty led to higher business confidence, resulting in stronger data. The frontloading of goods imports and price hikes to preempt tariffs may have also contributed to higher PMIs. Furthermore, oil prices have surged over 10% from their December levels, reinforcing the stagflation regime. These factors do not bode well for CPI tomorrow [Jan. 15] and the FOMC later this month, potentially leading to hawkish and stagflationary outcomes that may put more pressure on risk assets." Markus Thielen, founder of 10x Research "Bitcoin continues to trade within a narrowing wedge, with several critical catalysts on the horizon. Expectations for a higher CPI number have risen, creating a scenario where a softer-than-expected inflation reading could trigger a bitcoin rally." Focus on XRP and AI XRP surged to $2.90 early today, matching its December high, with technical analysis suggesting a continued upward trend. Meanwhile, according to Wintermute, dip buyers have been active in AI coins, including FAI, GRASS, VIRTUAL, Ai16z, and TAO. These coins could potentially chalk out bigger gains if the CPI spurs renewed risk-taking in financial markets. Key Events to Watch Token Events Conferences: Token Talk By Oliver Knight Derivatives Positioning Market Movements: Bitcoin Stats: Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors, as of Jan. 14 Overnight Flows Chart of the Day While You Were Sleeping In the Ether