Investing.com-- Bitcoin fell further on Thursday, but held near a three-week high after a key U.S. inflation report showed a surprising decline in April.
The world’s largest cryptocurrency fell 2% to $101,880.0 by 09:51 ET (13:51 GMT).
The token was supported above the crucial $100,000 level, buoyed by optimism over easing trade tensions, though lingering uncertainty kept the rally in check this week.
Bitcoin supported by easing trade tensions
Global markets saw increased risk appetite this week on easing trade tensions between the world’s two largest economies.
A joint statement on Monday by the U.S. and China to temporarily roll back tariffs helped calm fears of a global economic downturn.
Moreover, U.S. consumer price index data released Tuesday came in below expectations, easing concerns over the inflationary effects of trade tariffs.
These developments reinforced expectations of a Federal Reserve interest rate cut this year, but caution persisted amid concerns over potential reacceleration in inflation remained amid tariff risks.
Analysts cautioned that the central bank would prioritize taming inflation and likely wait for clear signs of economic deterioration before cutting rates.
PPI fell unexpectedly in April on sharp decline in wholesale service prices
U.S. producer prices unexpectedly declined in April, driven by the sharpest drop in service costs since 2009. The producer price index (PPI) fell 0.5% last month, following a flat reading in March, which was revised up from a previously reported 0.4% decline, the Labor Department said Thursday.
Analysts had expected a 0.2% increase. On a year-over-year basis, the PPI rose 2.4%, easing from a 3.4% gain in March.
Wholesale service prices fell 0.7%, the steepest drop since records began in late 2009, as demand for air travel and hotel stays weakened.
The softer data may prompt some economists to revise down April forecasts for core PCE inflation, currently seen rising 0.2%. Core PCE was flat in March and up 2.6% annually.
Markets are pricing in a potential Federal Reserve rate cut in September, although some analysts believe a move may come later in the year.
Israel’s crypto trading platform valued at $5.6 bln in Nasdaq listing
Israel-based stock and cryptocurrency trading platform eToro made a strong debut on the Nasdaq on Wednesday, with shares opening at $69.69, a 34% increase from the IPO price of $52, giving the company a valuation of approximately $5.6 billion.
The company raised nearly $620 million by selling 11.9 million shares, exceeding its initial target.
Founded in 2007, eToro offers a platform for trading stocks and cryptocurrencies, with features allowing users to mimic top investors.
This comes amid growing optimism around favourable crypto regulations under Donald Trump’s administration.
Earlier this week, top U.S. cryptocurrency exchange Coinbase Global (NASDAQ:COIN) became the first digital asset player to join the S&P 500 index.
Coinbase hit by cyberattack, expects up to $400mn blow; shares fall
Coinbase 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. The news pushed its shares down 5% after the market open on Thursday.
The crypto exchange 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.
Coinbase said the attackers paid external support contractors and employees outside the U.S. to extract internal data. The involved staff have been terminated.
The company declined a $20 million ransom demand and instead offered the same amount as a reward for information, adding that it is cooperating with law enforcement.
Crypto price today: altcoins drop; Polygon, Cardano lead losses
Most Altcoins dropped on Wednesday, after sharp gains earlier this week.
World no.2 crypto Ether fell 2.7% to $$2,515.54.
World no. 3 crypto XRP nearly 5% to $2.43.
Solana slumped around 5%, while Cardano plunged roughly 7%, and Polygon declined 6.8%.
Among meme tokens, Dogecoin plunged 5%, while $TRUMP fell 5.7%.
Ayushman Ojha contributed to this report.