Crypto markets staged a strong rebound on Friday, recovering a large part of this week’s losses after softer-than-expected U.S. inflation data boosted risk appetite across global markets.
Bitcoin climbed nearly 6% on the day, briefly pushing back toward the $69,000 level before stabilizing just below it. The move marks a notable shift after yesterday’s macro-driven selloff that sent BTC toward the mid-$60,000 range.
Ethereum followed with even stronger momentum, rising 7.5% from recent lows to reclaim the $2,000 level. Solana jumped 10% to around $85, while XRP gained 4%. BNB posted a more modest 2% increase. Overall, the global crypto market capitalization rose roughly 4% to $2.36 trillion.
Read also: 6 Reasons Why Crypto Is More Volatile Than Other Assets
Softer Inflation Sparks Risk-On Move
The catalyst for the rebound came from January’s Consumer Price Index report. Headline inflation rose 0.2% month-over-month and 2.4% year-over-year, both slightly below expectations. Core inflation, excluding food and energy, increased 0.3% on the month and 2.5% annually – marking the slowest yearly core reading since 2021.
The data eased concerns that price pressures were reaccelerating at the start of the year. As a result, U.S. equities turned higher, with major indexes posting gains during Friday’s session. Crypto assets, which have shown strong correlation with tech stocks and broader risk sentiment in recent months, reacted quickly.
Lower-than-expected inflation also revived expectations that the Federal Reserve may still have room to ease policy later this year, even as recent labor market data pointed to resilience in employment.
Read also: How Interest Rates Impact Bitcoin: Exploring the Correlation
Relief Rally, But Caution Persists
Despite today’s bounce, the broader structure remains fragile. Bitcoin is still over 40% below its October highs, and recent weeks have been defined by sharp liquidations, ETF outflows, and high volatility.
For now, the recovery above $69,000 improves short-term momentum. The next key area remains the $70,000 level – a psychological threshold that traders continue to watch closely.
