By George Glover
Bitcoin was edging higher on Wednesday, but other cryptocurrencies were having a tougher time of it ahead of a fresh batch of inflation data that could determine if the Federal Reserve will be able to cut interest rates in 2025.
The world's largest token climbed 1% to $96,181 in early trading, putting it about 14% below its previous record high of just above $109,000.
Among other cryptos, Ethereum traded flat, but XRP slipped 0.8% and Solana was down 1%.
The broader market was struggling for direction as investors waited for the January consumer price index report, set to be published at 8.30 a.m. Eastern Time.
The data could be key for cryptos, given that any signs of a flare-up in inflation would likely slam the door on any Fed interest-rate cuts this year. Higher borrowing costs tend to drag on Bitcoin and other tokens, because investors able to find relatively better returns in lower-risk asset classes like the bond market.
Write to George Glover at george.glover@dowjones.com
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(END) Dow Jones Newswires
February 12, 2025 05:17 ET (10:17 GMT)
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