Investing.com-- Bitcoin rebounded on Friday as investors mulled the U.S. Federal Reserve’s interest rate outlook after subdued inflation prints released this week.
Meanwhile, crypto markets were cautious as the top U.S. cryptocurrency exchange, Coinbase Global , said it could take a financial hit of up to $400 million due to a cyberattack.
Bitcoin rose 1.6% to $103,800.0 by 09:42 ET (13:42 GMT).
The token surged nearly 10% last week, reaching above $105,000, but some profit-taking and a cautious U.S. economic outlook stalled the rally.
Still, Bitcoin remained supported above the key $100,000 level on optimism over easing trade tensions.
Soft PPI, CPI inflation data sparks Fed rate-cut bets
Data on Thursday showed that U.S. producer prices unexpectedly declined in April, driven by the sharpest drop in service costs since 2009.
Earlier this week, consumer price index data came in softer than expected, easing worries about inflationary pressure from trade tariffs.
Lower inflation and the potential for reduced interest rates typically weaken the U.S. dollar, making alternative assets like Bitcoin more attractive.
A dovish Fed also boosts risk appetite, driving investor interest toward higher-yielding and speculative assets, including cryptocurrencies.
However, caution persisted amid concerns over potential reacceleration in inflation amid tariff risks.
Coinbase shares slip on cyberattack, expects up to $400mln blow
Coinbase Global (NASDAQ:COIN) on Thursday warned of a potential financial impact ranging from $180 million to $400 million due to a cyberattack that compromised data from a limited number of customer accounts.
Shares of the biggest U.S. cryptocurrency exchange closed 7.2% lower on Thursday.
The company said it was contacted on May 11 by an unidentified group claiming to have accessed internal documents and customer information.
While login credentials remained secure, the attackers did obtain names, addresses, and email data. Affected customers who were misled into transferring funds will be reimbursed, the company said.
Earlier this week, the company’s stock saw stellar gains as it became the first digital asset player to join the S&P 500 index.
U.S. judge denies SEC and Ripple bid, prolonging case resolution
The Southern District of New York has rejected a joint request from the SEC and Ripple Labs seeking an indicative ruling tied to their proposed settlement.
The two sides had asked the court to weigh in on lifting an August 2024 injunction and cutting Ripple’s penalties from $125 million to $50 million. However, since both parties filed appeals last year, the matter now sits with the Second Circuit, limiting the district court’s jurisdiction.
“Accordingly, if jurisdiction were restored to this court, the court would deny the parties’ motion as procedurally improper,” Judge Analisa Torres wrote in Thursday’s order. She added that the parties had not addressed the “heavy burden” required to lift the injunction and noted such relief under Rule 60 should be granted only in “exceptional circumstances.”
Crypto price today: altcoins mildly higher
Most altcoins were mildly higher on Friday, tracking Bitcoin’s recovery.
World no.2 crypto Ether rose 2.5% to $2,604.03.
World no. 3 crypto XRP slipped 0.6% to $2.43.
Solana added 2%, while Cardano edged higher 2.5%, and Polygon climbed 3.5%.
Among meme tokens, Dogecoin rose 2.2%, while $TRUMP advanced 3.5%.
Ayushman Ojha contributed to this report.