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.

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

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

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

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.

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.

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) held $96,000 at the Jan. 14 Wall Street open as US macro data boosted a price comeback. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD extending gains, which began hours after the pair hit two-month lows the day prior.

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.

The latest Consumer Price Index (CPI) figures for December have rattled markets, throwing the Federal Reserve’s inflation strategy into question.