Bitcoin has changed direction after weeks of retreat during which crypto investors dumped risky assets. The cryptocurrency rose 4% in the past 24 hours to $100,000 immediately following the release of closely-watched inflation data.

On Wednesday, the price of bitcoin continued rising, surging to over $99,000 as it looked poised to return to the $100,000 mark, driven by new inflation data. Minutes after the U.S. Bureau of Labor Statistics unveiled new data from the Consumer Price Index, bitcoin’s price jumped by $1,500, representing a 2% price improvement for the day.

Bitcoin hovered near $100,000 after notching its biggest gain of the new year on reassuring US inflation data that lifted global markets by reviving bets on further Federal Reserve interest-rate cuts.

The price of Bitcoin dipped to $92,700 as a stronger-than-expected labor market reading contributed to investors' inflation jitters.

The fall comes after the cryptocurrency experienced a meteoric rise, fueled in part by the reelection of Donald Trump.

Inflation fears are eating away at Bitcoin’s post-election gains, and consumer prices rose a greater-than-expected pace in December.

Fartcoin (FARTCOIN) led the highest gains over the past week among the largest 100 crypto assets by market cap. The Solana-based meme coin rallied 69.4% over the last 7 days to $1.42 at press time while its market cap has jumped to $1.41 billion.

Crypto markets stumbled with bitcoin (BTC) losing the $100,000 level on Tuesday U.S. morning as two stronger-than-expected U.S. economic data

On Friday, the price of Bitcoin (BTC) hit the $102,000 mark, increasing by 8.4% on the weekly chart. The ongoing positive sentiment surrounding Bitcoin is largely fueled by hype around Donald Trump’s inauguration on January 20.

Fundstrat's Tom Lee told CNBC's "Squawk Box" Monday that bitcoin could correct to $70,000 before breaking to new records and eventually end the year between $200,000 and $250,000. Crypto traders are accustomed to steep drawdowns in bitcoin during a bull market.

Bitcoin (BTC) continues its recovery, trading above $97,000 on Wednesday after retesting its key psychological level at $90,000 earlier this week. The upcoming US Consumer Price Index (CPI) data release could bring volatility to Bitcoin, and traders should watch for it.

Crypto prices are stuck in a tug of war between investors' concerns about rising inflation under the incoming administration of Donald Trump and optimism over the president-elect'