Investing.com-- Bitcoin fell for a third straight session on Wednesday as traders continued to lock-in profits from a recent rally, while anticipation of more cues on U.S. policy also spurred caution.
The world’s largest cryptocurrency has been on an extended downturn since late last week as investors locked-in profits from a run-up to record highs. Traders were also somewhat disappointed as the crypto failed to clear the coveted $100,000 level.
Risk appetite was further dented by U.S. President-elect Donald Trump threatening to impose more trade tariffs on several countries, sparking fears of a renewed trade war.
Bitcoin fell 1.6% to $93,131.5 by 01:16 ET (06:16 GMT).
US econ. data, Trump policies in focus
Focus this week was on a slew of key U.S. economic readings, which are likely to factor into the outlook for interest rates.
PCE price index data- the Federal Reserve’s preferred inflation gauge- is due later on Wednesday, and is expected to factor into the central bank’s plans to cut rates further.
The data comes just after the minutes of the Fed’s November meeting showed policymakers split over the pace of future rate cuts, with officials calling for gradual easing.
A revised reading on third-quarter gross domestic product data is also due later on Wednesday. Recent signs of resilience in the U.S. economy, especially inflation, sparked concerns that the Fed will have little impetus to cut rates rapidly.
Beyond economic data, focus was also on what Trump’s policies will entail for crypto. Trump had vowed to make America the “crypto capital” of the world, and had also floated the idea of a national Bitcoin reserve.
But traders were now awaiting tangible cues on crypto policy from Trump, who is set to take office from January 20. His picks for Treasury Secretary and Commerce Secretary offered some encouragement, given that both Scott Bessent and Howard Lutnick have expressed support for crypto.
Crypto price today: altcoins retreat tracking Bitcoin weakness
Weakness in Bitcoin spilled over into major altcoins, with most tokens seeing a sustained decline in recent sessions after a strong melt-up in November.
World no.2 crypto Ether fell 0.4% to $3,419.99. XRP, Solana, Cardano and Polygon fell between 0.9% to 5%, with XRP leading losses.
Among meme tokens, Dogecoin lost 3%.