$BTC

Bitcoin continued to decline on Thursday but still remained near a three-week high as investors awaited a crucial U.S. inflation report for clues on the Federal Reserve's interest rate outlook.

The world's largest cryptocurrency fell 1.3% to $102,422.5 at 02:02 ET (06:02 GMT).

The token is supported above the important $100,000 level, driven by optimism about easing trade tensions, although uncertainty still looms that has restrained gains this week.

Bitcoin is supported by easing trade tensions; awaiting U.S. PPI data

Global markets recorded an increase in risk appetite this week as trade tensions between the two largest economies eased.

A joint statement on Monday from the U.S. and China about temporarily reducing tariffs helped alleviate fears of a global economic downturn.

Furthermore, U.S. consumer price index data released on Tuesday came in lower than expected, easing concerns about inflationary impacts from trade tariffs.

These developments reinforced expectations that the Federal Reserve will cut interest rates this year, however, caution remains due to concerns about the potential for inflation to accelerate again amid tariff risks.