Bitcoin (BTC) rebounded as investors mulled the U.S. Federal Reserve's interest rate outlook

Bitcoin rose 1.6% to $104,014.5 by 00:50 ET (04:50 GMT). The token surged nearly 10% last week, reaching above $105,000, but some profit-taking and a cautious U.S. economic outlook stalled the rally.

Bitcoin price rose on Friday as investors mulled the U.S. Federal Reserve’s interest rate outlook after subdued inflation prints released this week.

Crypto markets, meanwhile, remained cautious as the top U.S. cryptocurrency exchange, Coinbase Global (NASDAQ:COIN) said it could take a financial hit of up to $400 million due to a cyberattack.

Bitcoin rose 1.6% to $104,014.5 by 01:50 ET (05:50 GMT).

The token surged nearly 10% last week, as it rose above the $105,000 level. But some profit-taking and a cautious U.S. economic outlook stalled the rally.

Still, Bitcoin remained supported above the key $100,000 level on optimism over easing trade tensions.

Soft PPI, CPI inflation data sparks Fed rate-cut bets

Data on Thursday showed that the U.S. producer prices unexpectedly declined in April, driven by the sharpest drop in service costs since 2009.

Earlier this week, consumer price index data came in softer than expected, easing worries about inflationary pressure from trade tariffs.

Lower inflation and the potential for reduced interest rates typically weaken the U.S. dollar, making alternative assets like Bitcoin more attractive.

A dovish Fed also boosts risk appetite, driving investor interest toward higher-yielding and speculative assets, including cryptocurrencies.

However, caution persisted amid concerns over potential reacceleration in inflation amid tariff risks.

Coinbase shares slip as it expects up to $400mln blow from cyberattack

Coinbase Global warned on Thursday of a potential financial impact ranging from $180 million to $400 million due to a cyberattack that compromised data from a limited number of customer accounts.

Shares of the biggest U.S. cryptocurrency exchange closed 7.2% lower on Thursday.

The company said it was contacted on May 11 by an unidentified group claiming to have accessed internal documents and customer information.

While login credentials remained secure, the attackers did obtain names, addresses, and email data. Affected customers who were misled into transferring funds will be reimbursed, the company said.

Earlier this week, the company's stock saw stellar gains as it became the first digital asset player to join the S&P 500 index.

Crypto price today: altcoins subdued; XRP slips 3%

Most altcoins were largely unchanged on Friday after a volatile week.

World no. 2 crypto Ether rose 0.8% to $2,588.45.

World no. 3 crypto XRP declined 3% to $2.4243.

Solana was muted, while Cardano edged down 0.2%, and Polygon fell 0.6%.

Among meme tokens, Dogecoin ticked 0.3% lower, while $TRUMP rose 1.1%.