Nov 27 2024: Bitcoin extended its losses for the third consecutive session on Wednesday, falling to $93,131.5 by 01:16 ET (06:16 GMT), as traders locked in profits following a recent rally. The cryptocurrency’s inability to breach the $100,000 milestone dampened investor sentiment, while concerns over U.S. policy further weighed on risk appetite.
President-elect Donald Trump’s renewed threats of trade tariffs have sparked fears of escalating trade tensions, adding to market caution.
U.S. Economic Data and Trump Policies Take Center Stage
Key U.S. economic indicators, including the PCE price index—a preferred inflation gauge of the Federal Reserve—are expected later in the day and could influence the Fed’s interest rate trajectory. The release follows mixed signals from the Fed’s November meeting minutes, highlighting divisions over the pace of rate cuts.
A revised third-quarter GDP report is also due, with recent signs of U.S. economic resilience raising doubts about aggressive rate reductions.
Traders are also closely watching Trump’s crypto policy as he prepares to take office on January 20. While he has pledged to position the U.S. as a global crypto hub and even suggested a national Bitcoin reserve, specifics remain unclear. His Treasury and Commerce Secretary nominees, Scott Bessent and Howard Lutnick, are seen as crypto-friendly, adding some optimism.
Altcoins Slide as Bitcoin Weakens
The downturn in Bitcoin spilled over into the broader crypto market.
- Ether, the second-largest cryptocurrency, fell 0.4% to $3,419.99.
- XRP, Solana, Cardano, and Polygon posted losses ranging from 0.9% to 5%, with XRP leading the decline.
- Dogecoin dropped 3% among meme tokens.
The broader market pullback follows a strong rally in November, reflecting profit-taking and market caution as investors digest the latest economic and policy developments.
