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

Meanwhile, crypto markets were cautious as the top U.S. cryptocurrency exchange, Coinbase Global

Investing - Bitcoin price rebounded on Friday as investors mulled the U.S. Federal Reserve’s interest rate outlook following a string of upbeat inflation data.

The world’s biggest cryptocurrency rose 1.6% to $104,014.5 by 01:50 ET (05:50 GMT).

Bitcoin surged nearly 10% last week, breaking above the $105,000 mark, but some profit-taking and a cautious U.S. economic outlook stalled the rally.

Still, the token remained supported above the key $100,000 level amid optimism over easing trade tensions and a dovish Fed, which usually bodes well for riskier assets like Bitcoin.

Data on Thursday showed that 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 over inflationary pressure from trade tariffs.

Lower inflation and the potential for reduced interest rates typically weaken the 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.

But some caution remained as economists warned that inflation may reaccelerate in the second half of the year amid the threat of fresh trade tariffs.

Coinbase shares slip on cyberattack; expects up to $400 mln blow

Coinbase Global (NASDAQ:COIN) on Thursday warned of a potential financial impact of $180 million to $400 million from a cyberattack that compromised data from a limited number of customer accounts.

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

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, Coinbase 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 traded largely flat 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%.