Bitcoin rose to $198,134 with a %1 increase, partially recovering from Thursday's sharp drop triggered by hotter than expected U.S. wholesale inflation data.

Bitcoin briefly reached a record level of $124,480 before yesterday's pullback.

The US producer price index ( PPI ) came in above expectations, reducing hopes for a 50 basis point rate cut by the Fed. Markets are still expecting a 25 basis point cut in September. Richard Hunter from Interactive Investor said, "The inflation surprise changed the needle. A more aggressive cut is now off the table."

President Trump will meet with Russian President Putin today. Although the leaders will discuss the ongoing Russia-Ukraine war, analysts see very little chance for an urgent ceasefire or diplomatic breakthrough.

Despite recent turmoil, Bitcoin has shown an increase of over 40% since the beginning of the year, supported by its perceived value as a hedge against institutional demand, ETF inflows, and economic uncertainty.