Bitcoin price (BTC USD) hits 2-month high after Strategy’s (MSTR) $1.25B buy & soft US inflation – here's why Peter Schiff says traders are making a costly mistake

Bitcoin price climbed sharply on Wednesday, reaching its highest level in two months, as a major purchase by MicroStrategy and supportive US inflation data boosted investor appetite for risk assets.

Bitcoin Price USD Today Hits Two-Month High Near $97,700, Altcoins Rally

The world’s largest cryptocurrency rose about 4.8% to $97,699, its strongest level since November 13. The BTC USD rally came as cryptocurrency markets broadly traded higher, with Ethereum gaining 6.3% to $3,376. Other major tokens followed suit, including Ripple’s XRP up 3.4%, BNB rising 2.8%, and Solana advancing 3.1%.

Strategy's (MSTR) Bitcoin Buy Fuels BTC USD Rally

The surge followed Strategy’s disclosure that it bought 13,627 bitcoins at an average price of $91,519, spending roughly $1.25 billion. The purchase lifted the company’s total Bitcoin holdings to 687,410 coins, reinforcing its status as the largest corporate holder of the cryptocurrency. It also marked Strategy’s biggest Bitcoin acquisition since July 2025 and was funded through the issuance of common and preferred stock.


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US Inflation Data Supports Risk Assets

Market sentiment was further supported by US inflation data for December, which came in line with expectations. Consumer prices rose 0.3% on a monthly basis, a reading that helped improve the outlook for risk assets, including cryptocurrencies.

Peter Schiff Calls Bitcoin Price Move a “Sucker’s Rally”

However, not everyone is convinced the rally will last. Chief Economist & Global Strategist Europac, Peter Schiff, described the move as a “huge sucker’s rally,” as per a social media X post. He wrote that, "My guess is that some traders are taking profits in gold and silver mining stocks and buying Bitcoin ETFs and $MSTR. That’s a big mistake, and savvy traders should take advantage by buying mining stocks and selling Bitcoin and MSTR."


Also read: MSTR stock rallies as Bitcoin price (BTC USD) today hits $97k and insider buy sparks investor buzz – analysts reveal bullish Strategy stock price target

Crypto Rises as US Stock Market Today Slides

While crypto markets pushed higher, US stocks declined for a second straight session, extending a pullback from recent record highs as investors assessed new earnings reports and kept a close eye on geopolitical developments.

The S&P 500 fell 0.9%, while the Dow Jones Industrial Average slipped 164 points, or 0.3% and the Nasdaq Composite led losses, dropping 1.5%.

Tech and Bank Stocks Drag Wall Street Lower

Technology stocks weighed heavily on the market, with chipmakers under pressure. Broadcom slid 5%, Nvidia fell 2%, and Micron Technology lost 1% after Reuters reported that Chinese customs officials have advised that Nvidia’s H200 chips are not permitted to enter the country.

Bank shares also struggled. Wells Fargo sank more than 5% after reporting weaker-than-expected fourth-quarter revenue. Bank of America and Citigroup declined despite beating earnings estimates, adding to losses following President Donald Trump’s call for credit card interest rate reform.

FAQs

Did Ethereum rise along with Bitcoin?
Yes, Ethereum gained 6.3%, trading at $3,376.

What did Peter Schiff say about the Bitcoin rally?
He called it a “huge sucker’s rally” and warned traders against buying Bitcoin and MSTR.