Investing.com-- Bitcoin climbed on Wednesday, recovering some of the late losses as traders lock-in profits from a recent rally and anticipation of more cues on U.S. policy 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 climbed 1.8% to $93,936.0 by 08:49 ET (13:49 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.
The 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 (GDP) 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.
Trump may shift crypto regulatory power to CFTC, report suggests
In other crypto-related news, Trump is reportedly considering expanding the Commodity Futures Trading Commission's (CFTC) authority to regulate certain digital assets, according to Fox Business.
This move could allow the CFTC to oversee crypto exchanges and spot markets for assets like bitcoin and ether, categorized as commodities. Such a shift would reduce the Securities and Exchange Commission’s (SEC) role in regulating the crypto sector, Fox's report said.
Outgoing SEC Chair Gary Gensler, who has backed the CFTC's authority over bitcoin as a commodity, recently announced plans to resign on Trump’s inauguration day, January 20, 2025.
Crypto price today: altcoins rise higher
Bitcoin's slight recovery spilled over into major altcoins, with most tokens seeing notable gains in the Wednesday session.
World no.2 crypto Ether jumped 5% to $3,488.35. XRP, Solana, Cardano and Polygon rose between 3.5% to 9%.
Among meme tokens, Dogecoin added around 4%.
Ambar Warrick contributed to this report