As inflation readings fuel investor risk appetite, Bitcoin nears $100,000 once more.

On Wednesday, Bitcoin's rebound continued as it remained close to $100,000, driven by an optimistic inflation report that boosted investor confidence.

According to Coin Metrics, the price of the flagship cryptocurrency was last higher by more than 2% at $99,034.55, bringing its 2-day gain to about 7%.

The broader cryptocurrency market, as measured by the CoinDesk 20 index, experienced a 5% increase.

Bitcoin proxies and each gained approximately 5%, while shares of gained 6%.

On Wednesday, the market reacted to the unexpected slowing of core inflation, as shown in the December consumer price index, which was released a day earlier. Additionally, the producer price index showed that wholesale prices rose less in December than expected, providing another bright inflation reading.

The post-election crypto rally ended in 2024 after Federal Reserve Chair Jerome Powell warned about inflation on Dec. 18, and bitcoin experienced even steeper losses last week due to a spike in bond yields, causing investors to sell growth-oriented assets. On Monday, bitcoin dropped below $90,000.

Bitcoin's price has been influenced by the equities market in recent weeks, due to the increasing popularity of bitcoin ETFs and the institutionalization of the asset. In the past week, bitcoin's correlation with the S&P 500 has increased, while its correlation with gold has decreased significantly since the end of December.