Pakinomist– Bitcoin rose on Tuesday after muted performance in the past few days as investors cautiously awaited the US inflation report to gauge the Federal Reserve’s interest rate outlook.
rose 1% to $95,374.2 at 12:19 a.m. ET (05:19 GMT).
The token had hit a session low of $89,664.8 on Monday, but dip buyers emerged and pushed up prices.
Traders are cautious ahead of US CPI
Bitcoin traders are cautious ahead of the US release on Wednesday.
The Federal Reserve’s hawkish stance in December, which signaled fewer rate cuts in 2025, has heightened market sensitivity to inflation data.
Recent economic indicators, including a robust December jobs report, have led to a reassessment of the likelihood of near-term interest rate cuts by the Fed.
A higher-than-expected inflation reading could reinforce the Fed’s hawkish stance, potentially exerting further 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 strengthened its leadership in the rapidly growing stablecoin market, offering a digital currency linked to traditional currencies. This structure allows users to transfer money between cryptocurrencies while avoiding price volatility.
El Salvador has actively promoted the adoption of digital currency. In 2021, President Nayib Bukele made history by declaring bitcoin as legal tender alongside the US dollar, strengthening the country’s reputation as a crypto-friendly destination.
Crypto price today: most altcoins rise higher, Ether falls
In the broader cryptocurrency market, most altcoins rose with Bitcoin, but gains were minimal due to traders’ cautious stance.
World no. 2 crypto fell 2% to $3,162.02.
World no. 3 crypto rose 0.7% to $2.5271.
rose 0.8% higher and rose 1%, while rose 0.4%. Among meme tokens, 4% jumped.
