Bitcoin Remains Stable at $98K Amid Caution Over Fed Policies
Bitcoin’s price is stable at $98,124.6 after two days of gains, but investor sentiment is cautious due to the Federal Reserve’s hawkish shift on interest rates. Russia is using Bitcoin for international transactions to mitigate sanctions, while other cryptocurrencies are experiencing declines in value.
Bitcoin’s price held steady at $98,124.6, a slight decline of 0.1%, as it struggled for direction following two consecutive days of gains. Investors remain cautious in light of macroeconomic pressures, particularly after the U.S. Federal Reserve’s shift toward a hawkish policy stance. This comes after Bitcoin fell below the significant $100,000 threshold due to indications of a slower pace for future interest rate cuts, which have raised concerns regarding speculative assets like cryptocurrencies.
Despite a notable recovery of nearly 5% in the previous sessions, Bitcoin’s positive momentum faltered due to investor wariness about the Fed’s outlook, projecting potentially fewer interest rate cuts in 2025. Last week, Bitcoin experienced its first weekly decrease since the aftermath of the presidential election, with the Fed’s announcement disrupting the subsequent rally that had peaked at a record $108,244.9. Profit-taking and macroeconomic pressures influenced this price drop, prompting a reassessment of positions among speculative assets in light of the Federal Reserve’s recent decisions.
In other developments, Russian companies have started utilizing Bitcoin and other cryptocurrencies for international transactions, as legislative adjustments aim to counteract the effects of Western sanctions. Finance Minister Anton Siluanov highlighted this trend, emphasizing the challenges posed by sanctions in trade with key partners like China and Turkey. To navigate these restrictions, Russia has legalized the use of cryptocurrencies in foreign trade and is regulating Bitcoin mining, positioning itself as a dominant player in the global Bitcoin mining landscape.
Meanwhile, the cryptocurrency market faced downward pressure today, with most altcoins declining in value. Ethereum, the second-largest cryptocurrency, decreased by 1.3% to $3,443.05, while XRP fell by 2% to $2.2462. Other notable declines included Solana, which dropped 2.2%, and Polygon, which saw a 4.6% decrease. Cardano also fell by 3.3%, alongside a 2% drop in Dogecoin, reflecting subdued demand for speculative assets post-Fed announcements.
This article discusses the current state of Bitcoin’s price amid macroeconomic pressures resulting from the U.S. Federal Reserve’s hawkish policy changes. Such changes have influenced investor sentiment toward speculative assets, causing some fluctuations in price. Additionally, it highlights Russia’s increasing use of Bitcoin for international trade as a response to sanctions, showcasing the evolving landscape of cryptocurrency utility. The performance of other significant cryptocurrencies is also addressed, reflecting broader market trends and investor behavior in the context of the Fed’s monetary policies.
In summary, Bitcoin’s price remains steady at approximately $98,000 after recent gains, but investor sentiment is tempered due to the Federal Reserve’s policy adjustments. Coupled with Russia’s strategic move to utilize cryptocurrencies for international trade amid sanctions, the evolving dynamics of the crypto market highlight ongoing challenges. Furthermore, the performance of other cryptocurrencies indicates a broader trend of declining values, suggesting a cautious outlook as investors navigate this landscape following macroeconomic developments.
Original Source: ca.investing.com
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