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Bitcoin Recovers Amid Trade Tensions and Upcoming Inflation Data

Bitcoin rebounded on Monday following a weekend decline, influenced by U.S. trade tariffs and anticipation of key inflation data. Despite market volatility, institutional investments in crypto continue to grow.
Published on 2025-02-10

Bitcoin's Recovery and Market Volatility

Bitcoin rose 2.1% to $97,311.0 on Monday, recovering from a 4% drop last week. The cryptocurrency's rebound came despite heightened trade tensions and cautious investor sentiment ahead of U.S. inflation data.

Impact of Trade Tariffs and Inflation Concerns

The U.S. imposed new tariffs on aluminum and steel imports, while China retaliated with tariffs on key U.S. exports. These actions exacerbated market uncertainty, driving investors away from speculative assets like crypto. The upcoming Consumer Price Index (CPI) data on Wednesday is expected to show a 2.9% year-over-year increase, signaling sticky inflation and potentially higher interest rates.

Institutional Investment in Bitcoin

Bitcoin treasury firm Strategy purchased an additional 7,633 BTC, increasing its holdings to 478,740 BTC, valued at over $46 billion. This represents over 2.2% of Bitcoin's total supply, highlighting growing institutional confidence in the asset.

Altcoins Track Bitcoin's Movement

Most altcoins, including Ether, XRP, and Solana, saw modest gains, mirroring Bitcoin's recovery. However, market sentiment remains cautious, with traders bracing for potential volatility tied to inflation data and geopolitical developments.

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