Bitcoin recovers amid softer US inflation

Bitcoin rose 1.8 per cent to $83,511.6 on Thursday, recovering further from recent losses as softer-than-expected US inflation data provided mild support.

However, gains remained capped by concerns over an escalating US-led trade war and recession fears.

US President Donald Trump’s 25 per cent tariffs on steel and aluminium took effect Wednesday, with reports indicating further trade duties on Europe.

Markets feared these measures could disrupt global trade and fuel inflation, pressuring risk-heavy assets like cryptocurrencies. Bitcoin has lost about 10 per cent year-to-date, underperforming the S&P 500’s 4.6 per cent decline.

Altcoins showed mixed performance, with Ether down 0.6 per cent to $1,866.80, while Dogecoin and $TRUMP rose 3.3 per cent and 4.2 per cent, respectively.

Traders now await US producer price index data for further inflation cues ahead of next week’s Federal Reserve meeting.

Attribution: Investing.com

Subediting: M. S. Salama