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 (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.

Bitcoin extended its rebound on Wednesday, hovering below the $100,000 after another encouraging inflation report stirred risk-on appetite.

Bitcoin rose modestly early Wednesday after investors reacted to the latest U.S. inflation reading. The world’s largest cryptocurrency was up 2.7% over the past 24 hours to $98,863, according to CoinDesk data.

Bitcoin has surged back to almost $100,000 as key inflation reports show a slowdown, and the stock market is rebounding. The top cryptocurrency is trading at $99,442, representing an increase of 3.5% on Wednesday.

Bitcoin bounced on Tuesday, rising with other risk assets as traders digested a light inflation reading. On Tuesday the price of the flagship cryptocurrency rose 3.7% to $96,363.58, according to Coin Metrics,

Bitcoin was rising marginally but remained below $100,000 following a retracement from last month's record high. "Discretion may be the better part of valour in digital assets over the next week or so,