Investing.com — Bitcoin fell for a third straight session on Wednesday as traders continued to book profits on recent gains, but hopes for further cues on U.S. policy also added to caution.
The world's largest cryptocurrency has been on a prolonged slide since late last week as investors booked profits on a rally to record highs. Traders were also somewhat disappointed as the cryptocurrency failed to clear the coveted $100,000 level.
Risk appetite further declined after President-elect Donald Trump threatened to impose additional tariffs on several countries, raising concerns about a renewed trade war.
By 01:16 ET (06:16 GMT), the stock was down 1.6% at $93,131.5.
US economy. Data, noteworthy Trump policies
This week's focus was on a number of important U.S. economic indicators that are likely to be factored into the interest rate outlook.
The data, the Federal Reserve's preferred measure of inflation, is expected to be released later Wednesday and is expected to be factored into the central bank's plans for further rate cuts.
The data comes shortly after policymakers at the November Fed meeting were divided on the pace of future interest rate cuts, with officials indicating they were seeking gradual easing.
Revised third-quarter data is also expected to be released later on Wednesday. Recent signs of resilience in the U.S. economy, particularly in inflation, have raised concerns that the Fed has little impetus to cut interest rates quickly.
In addition to economic data, attention was also focused on what President Trump's policies will mean for cryptocurrencies. Trump has vowed to make the United States the “crypto capital” of the world and has even floated the idea of a national Bitcoin reserve.
However, traders are currently waiting for concrete cues on crypto policy from President Trump, who is set to take office on January 20th. Trump's picks for Treasury Secretary and Commerce Secretary came as some encouragement, given that Scott Bessent and Howard Lutnick have both expressed support for cryptocurrencies.
Cryptocurrency prices today: Altcoins retreat following Bitcoin weakness
Bitcoin's weakness has also spilled over into major altcoins, with most tokens posting sustained declines in recent trading after a severe selloff in November.
The world's second-largest cryptocurrency fell 0.4% to $3,419.99. ,, fell between 0.9% and 5%, with XRP leading the losses.
For meme tokens, it decreased by 3%.
