increased to 95 thousand dollars, traders cautious ahead of US inflation By Investing.com
Investing.com– Bitcoin rose on Tuesday after a weaker performance in recent days, as investors cautiously awaited a U.S. inflation report to gauge the Federal Reserve’s interest rate outlook.
rose 1% to $95,374.2 by 12:19 a.m. ET (05:19 GMT).
The token hit a session low of $89,664.8 on Monday, but short buyers emerged and pushed prices higher.
Traders cautious ahead of US CPI
Bitcoin traders are cautious ahead of Wednesday’s US announcement.
The Federal Reserve’s hawkish stance in December, which signaled fewer rate cuts in 2025, increased market sensitivity to inflation data.
Recent economic indicators, including a strong employment report in December, have led to a reassessment of the likelihood of a near-term rate cut by the Fed.
A higher-than-expected inflation reading could reinforce the Fed’s dovish stance, potentially putting additional downward pressure on Bitcoin.
Higher interest rates can put downward pressure on Bitcoin and other cryptocurrencies as they often lead to a stronger US dollar and reduced liquidity in financial markets.
Tether plans to move its headquarters to EL Salvador
the world’s largest stablecoin issuer, plans to move its headquarters to El Salvador, according to its CEO. The move is in line with El Salvador’s ambitions to position itself as a hub for cryptocurrency trading.
Tether has cemented its leadership in the fast-growing stablecoin market, offering a digital currency pegged to traditional currencies. This structure allows users to transfer funds between cryptocurrencies while avoiding price volatility.
El Salvador is actively promoting the adoption of digital currency. In 2021, President Nayib Bukele made history by declaring bitcoin legal tender alongside the US dollar, bolstering the country’s reputation as a crypto-friendly destination.
Cryptocurrency price today: most altcoins up, Ether down
In the broader cryptocurrency market, most altcoins rose due to Bitcoin, but gains were minimal due to the cautious attitude of traders.
The world’s No. 2 cryptocurrency fell 2% to $3,162.02.
The world’s No. 3 cryptocurrency rose 0.7% to $2.5271.
rose 0.8% and rose 1%, while gaining 0.4%. Among meme tokens, it jumped 4%.
