#Bitcoin recovered on Friday as investors mulled over the U.S. Federal Reserve's interest rate outlook following the low inflation data released this week.
Meanwhile, the cryptocurrency market is cautious after the leading U.S. cryptocurrency exchange, Coinbase Global, stated it could face financial losses of up to 400 million USD due to a cyber attack.
The currency has risen nearly 10% last week, surpassing the 105,000 USD mark, but profit-taking and a cautious U.S. economic outlook have slowed the momentum.
However, Bitcoin is still supported above the important level of 100,000 USD thanks to expectations of easing trade tensions.
Low PPI and CPI inflation data bolster expectations for the Fed to cut interest rates.
Data on Thursday showed that U.S. producer prices unexpectedly fell in April, due to the sharpest drop in service costs since 2009.
Earlier this week, consumer price index data came in lower than expected, easing concerns about inflationary pressures from trade tariffs.
Lower inflation and the potential for rate cuts typically weaken the USD, making alternative assets like Bitcoin more attractive.
A dovish stance from the Fed also boosts risk appetite, attracting investor interest in speculative and higher-yielding assets, including cryptocurrencies.
However, caution continues due to concerns about the possibility of inflation accelerating amid tariff risks.