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

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 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,

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 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 shot back to $97,044 on Tuesday, climbing 4.5% in a single day after plunging below $90,000 earlier in the week. The broader crypto market followed suit, with the CoinDesk 20 index rising 3.9%.