Bitcoin rose 1% to $95,374.2 as of 00:19 ET (05:19 GMT) on Tuesday after recovering from Monday's session low of $89,664.8. Dip buyers drove the rebound, but traders remain cautious ahead of the U.S. Consumer Price Index (CPI) release on Wednesday.
The Federal Reserve's hawkish outlook from December, signaling fewer interest rate cuts in 2025, has heightened market sensitivity to inflation data. A robust December jobs report has further reduced expectations of immediate rate reductions. Higher-than-expected CPI figures could strengthen the Fed’s stance, potentially pressuring Bitcoin due to its sensitivity to rising interest rates, which often lead to a stronger U.S. dollar and tighter market liquidity.
In other news, Tether, the largest stablecoin issuer, announced plans to relocate its headquarters to El Salvador. This move aligns with the country’s efforts to become a global crypto hub. El Salvador made headlines in 2021 by adopting Bitcoin as legal tender alongside the U.S. dollar, solidifying its reputation as a crypto-friendly nation. Tether’s dollar-pegged stablecoins have been instrumental in facilitating seamless crypto transactions while mitigating price volatility.
The broader cryptocurrency market saw modest gains, with most altcoins tracking Bitcoin’s movement. However, caution among traders limited upward momentum. Ethereum, the second-largest cryptocurrency, dipped 2% to $3,162.02. In contrast, XRP gained 0.7% to $2.5271, Solana rose 0.8%, and Polygon added 1%. Meme token Dogecoin outperformed, jumping 4%.
As investors closely monitor U.S. inflation data, Bitcoin’s performance may hinge on the Federal Reserve’s next policy moves, highlighting the growing intersection between crypto markets and macroeconomic trends.


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