Bitcoin Climbs to $95K Amid Cautious Market Sentiment

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Bitcoin saw a 1% increase on Tuesday, recovering from a quiet performance in recent days, as investors waited for the U.S. inflation report to gauge the Federal Reserve’s interest rate stance.

Bitcoin rose to $95,374.2 by 00:19 ET (05:19 GMT), after hitting a low of $89,664.8 on Monday, with dip buyers pushing prices back up.

Traders remain cautious ahead of the U.S. Consumer Price Index (CPI) release on Wednesday, as the Federal Reserve’s hawkish outlook in December has made the market more sensitive to inflation data. The strong December jobs report has led to a reassessment of potential near-term rate cuts, and higher-than-expected inflation could reinforce the Fed’s hawkish stance, potentially exerting downward pressure on Bitcoin.

Higher interest rates tend to strengthen the U.S. dollar and reduce market liquidity, which can negatively impact Bitcoin and other cryptocurrencies.

In related news, Tether, the world’s largest stablecoin issuer, announced plans to move its headquarters to El Salvador. The shift aligns with El Salvador’s goals to become a cryptocurrency trading hub. Tether’s digital currency, pegged to traditional currencies, offers a stable way for users to move funds between cryptocurrencies while avoiding volatility. El Salvador’s government has been proactive in promoting cryptocurrency adoption, including making Bitcoin legal tender in 2021.

 

 

 

 

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