Bitcoin and cryptocurrencies show signs of recovery before the release of the US inflation report. The report affects expectations for raising or lowering interest rates by the Federal Reserve, which directly impacts the performance of high-risk assets such as cryptocurrencies. A decrease in inflation may weaken momentum in the cryptocurrency market, as investors might expect that the Federal Reserve will lower interest rates later, temporarily reducing the appetite for high-risk assets. Meanwhile, an increase in inflation may ignite investors' appetite for hedging and drive them towards Bitcoin as an alternative asset against the erosion of purchasing power.