Investing.com– Bitcoin rose on Tuesday after a weak performance in recent days, as investors cautiously awaited the US inflation report to evaluate the Federal Reserve's interest rate outlook.
rose 1% to $95,374.2 at 00:19 ET (05:19 GMT).
The token had hit a session low of $89,664.8 on Monday, but dip buyers emerged and pushed prices higher.
Traders cautious ahead of US CPI
Bitcoin traders are acting cautiously ahead of Wednesday's US release.
The Federal Reserve's hawkish stance in December, signaling fewer interest rate cuts in 2025, has increased market sensitivity to inflation data.
Recent economic indicators, including a strong December jobs report, have led to a reassessment of the likelihood of near-term rate cuts by the Federal Reserve.
A higher-than-expected inflation reading may reinforce the Federal Reserve's hawkish 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 aligns with El Salvador's ambitions to position itself as a hub for cryptocurrency trading.
Tether has solidified its leadership in the rapidly 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 has been actively promoting the adoption of digital currency. In 2021, President Nayib Bukele made history by declaring bitcoin legal tender alongside the US dollar, reinforcing the country's reputation as a cryptocurrency-friendly destination.
Crypto Price Today: Most Altcoins Rise, Ether Falls
In the broader cryptocurrency market, most altcoins rose against Bitcoin, but gains were minimal due to traders' cautious stance.
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 it gained 0.4%. Among meme tokens, it increased by 4%.
