Bitcoin held steady at the $68,000 level amid light holiday trading, while broader cryptocurrency markets moved within a narrow range due to a lack of clear trading signals. This came as investors awaited several key U.S. economic data releases and anticipated upcoming meetings between the United States and Iran, reinforcing a cautious tone among traders.
Bitcoin declined by 0.5% to $68,056, after having nearly fallen below the $60,000 mark last week, amid a sector-wide sell off that has persisted for several months. The cryptocurrency has lost nearly 50% of its value since reaching its October peak, facing a series of ongoing challenges across the industry.
Recent losses in Bitcoin were driven by market concerns over U.S. monetary policy following the nomination of Kevin Warsh as Federal Reserve Chair. He is viewed as less inclined toward monetary easing, raising fears that U.S. financial conditions may not be as accommodative as previously expected an outlook that typically weighs on speculative assets such as cryptocurrencies.
On the U.S. economic front, investors are awaiting industrial production, trade data, and the Personal Consumption Expenditures (PCE) Price Index the Federal Reserve’s preferred inflation gauge along with the release of the minutes from the Fed’s January meeting.
Investor liquidity has shifted toward tangible assets such as gold and other precious metals, alongside volatility in U.S. technology stocks, which often move in tandem with the cryptocurrency market. Bitcoin has not received significant support from its largest institutional holders, including Strategy Inc., which stated it could withstand a price decline to as low as $8,000 per coin. This came despite the company reporting substantial fourth quarter losses, raising concerns over its Bitcoin linked debt exposure. Meanwhile, Japan’s Metaplanet Inc. reported significant valuation losses on its cryptocurrency holdings.
Across other digital assets, prices staged a modest recovery following sharp losses in recent weeks. Ethereum rose 0.9% to $1,976.10, while XRP gained 1.4% to $1.4758. Tokens such as BNB, Solana, and Cardano posted gains ranging between 1.7% and 3%. In contrast, meme coins declined, with Dogecoin falling 2.2% and $TRUMP dropping 3.7%.
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