Bitcoin has changed direction after weeks of retreat during which crypto investors dumped risky assets. The cryptocurrency rose 4% in the past 24 hours to $100,000 immediately following the release of closely-watched inflation data.

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.

After the data release, the crypto asset's price quickly surpassed $98,500, its highest value in over a week. This sharp rise represents an almost $10,000 rebound from Bitcoin's recent low of $89,200 on Monday, indicating significant interest in the leading cryptocurrency.

Inflation fears are eating away at Bitcoin’s post-election gains, and consumer prices rose a greater-than-expected pace in December.

Bitcoin climbed past $100,000 again after softer-than-expected US inflation helped to rekindle demand for riskier assets ranging from equities to cryptocurrencies.

Bitcoin rose back above the key $100,000 level, reaching a 10-day high of $102,081 overnight, according to LSEG data. Traders are returning to cryptocurrencies in anticipation of Donald Trump's inauguration on Monday.