Bitcoin rose 1% to $95,374.2 by 00:19 ET (05:19 GMT).
The token had reached a session low of $89,664.8 on Monday, but dip buyers emerged and pushed prices higher.
Bitcoin traders are exercising caution ahead of the U.S. Consumer Price Index (CPI) release on Wednesday.
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 robust December jobs report, have led to a reassessment of the likelihood of near-term rate cuts by the Fed.
A higher-than-expected inflation reading may reinforce the Fed’s hawkish stance, potentially exerting additional downward pressure on Bitcoin.
Higher interest rates can exert downward pressure on Bitcoin and other cryptocurrencies, as they often lead to a stronger U.S. dollar and reduced liquidity in financial markets.
Tether, the world’s largest stablecoin issuer, plans to relocate 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 digital currency adoption. In 2021, President Nayib Bukele made history by declaring bitcoin legal tender alongside the U.S. dollar, bolstering the country’s reputation as a crypto-friendly destination.
In the broader cryptocurrency market, most altcoins rose tacking Bitcoin, but the gains were minimal due to the cautious stance of traders.
World no.2 crypto Ether fell 2% to $3,162.02.
World no.3 crypto XRP rose 0.7% to $2.5271.
Solana edged 0.8% higher, and Polygon rose 1%, while Cardano gained 0.4%. Among meme tokens, Dogecoin jumped 4%.
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