Bitcoin hits 4-month high amid easing trade tensions and subdued US inflation

The world's leading cryptocurrency climbed to a 4-month high amid easing global trade tensions and improving macroeconomic signals. According to Investing, the bitcoin price was also supported by the news that Moody's downgraded the US credit rating from AAA to AA1.

During the last trading session, the bitcoin price rose to $107,000 and got close to setting a new historical record, but eventually retreated back to $103,000.

In May, the world's largest cryptocurrency managed to regain more than 11% amid a drop in US-China tensions. Bitcoin's growth was also supported by subdued inflation data in the US, which reinforced market expectations of a Fed interest rate cut. However, the regulator remains cautious, assuming an acceleration in consumer price growth due to Donald Trump's tariff policy, Investing reports.

But for now, the US economic statistics for April show no evidence of this momentum. This fact contributed to the appreciation of bitcoin, which, as a rule, benefits from Fed rate cuts and the accompanying weakening of the dollar, according to the web portal.