Bitcoin Dips as Traders Await Fed Rate Decision
Bitcoin experienced a slight drop on Friday, following a recent surge past key levels. Traders are exhibiting caution as they await the Federal Reserve’s rate decision scheduled for next week. The world’s largest cryptocurrency saw a significant increase on Thursday after President-elect Donald Trump expressed his commitment to making the U.S. a global leader in crypto. However, this rally was short-lived as no significant policy cues were provided.
– Bitcoin fell by 0.7% to $99,961.4 by 00:30 ET (05:30 GMT).
Fed Anticipation Impacts the Dollar and Crypto Market
All eyes are now on the Federal Reserve’s rate decision next week, with expectations that the central bank will . The uncertainty surrounding the Fed’s long-term rate outlook has caused market jitters, especially with producer inflation data for November surpassing expectations while consumer inflation remained steady. This has bolstered the , putting pressure on risk-driven assets across the board. Traders are anticipating the Fed’s stance on rates and preparing for a slower pace of easing in 2025, which could diminish the appeal of speculative assets like crypto.
Bitcoin and Ether Spot ETFs Witness Continued Inflows
Data from the crypto market indicates that spot exchange-traded funds tracking Bitcoin and Ether have seen sustained inflows in early December. This optimism is fueled by expectations of friendlier regulations under the Trump administration. Bitcoin ETFs have observed inflows for the eleventh consecutive day, with Blackrock’s iShares Bitcoin Trust leading in inflows. Likewise, spot Ether ETFs have experienced 14 straight days of inflows, with Blackrock and Grayscale ETFs attracting the most investments. These inflows suggest a growing institutional interest in crypto, providing investors with a safer route to gain exposure to these assets. The introduction of spot ETFs in U.S. markets earlier this year was perceived positively for the crypto market, with inflows picking up pace following Trump’s election win in early November.
Crypto Price Today: Altcoins Follow Bitcoin’s Lead
While most major altcoins retraced some of their gains achieved earlier in the week alongside Bitcoin, they have generally outperformed Bitcoin in recent weeks. This trend is driven by market optimism that favorable U.S. regulations will support the growth of cryptos beyond Bitcoin. For instance, Ethereum decreased by 0.3% to $3,916.31, while Ripple dropped by 3.6% to $2.3458. Other altcoins like Litecoin, Cardano, and Dogecoin also saw declines ranging from 2% to 7%. Among meme tokens, Shiba Inu fell by 2.7%.
In conclusion, the recent fluctuations in the crypto market are a direct response to the anticipation surrounding the Federal Reserve’s upcoming rate decision and the impact of Trump’s remarks on the industry. Investors are closely monitoring these developments to gauge the future trajectory of crypto assets and the broader financial landscape. The sustained inflows into Bitcoin and Ether ETFs signal a growing institutional appetite for digital assets, highlighting the increasing mainstream acceptance of cryptocurrencies as a legitimate investment option. As regulatory frameworks continue to evolve and macroeconomic factors influence market dynamics, staying informed and adaptable is crucial for investors looking to navigate the ever-changing world of finance.