Bitcoin Turns Upward, Recovering from a CPI-Driven Decline.

Bitcoin Recovers to $97,500 After CPI-Induced Drop

Bitcoin (BTC) has staged a solid recovery after slipping below $94,000 earlier on Wednesday, following unexpectedly strong U.S. inflation data. The cryptocurrency has bounced back to $97,500, marking a notable rebound.

While other cryptocurrencies have also posted gains, Bitcoin is leading the charge with a 1.4% increase in the last 24 hours, compared to a modest 0.5% gain in the CoinDesk 20 Index.

Federal Reserve Chairman Jerome Powell, continuing his testimony before Congress, commented that the latest CPI report indicates the central bank is nearing its inflation target, but more work is needed.

Bitcoin had surged above $109,000 before President Trump’s inauguration on January 20 but has been in a downward trend since then. The recent 4% rise from the morning’s low might suggest that short sellers are taking profits after driving the price lower.

U.S. stock markets also rebounded, with the Nasdaq only marginally down after initially falling by more than 1%.

On top of that, market sentiment may have been buoyed by President Trump’s announcement of a productive phone call with Russian President Putin regarding efforts to end the war in Ukraine, which could have helped ease investor concerns across both crypto and traditional markets.