Investing.com– Bitcoin climbed more than 1% for the third consecutive day on Friday and was set to end the week in positive territory as some investors shrugged off fears related to U.S. tariffs, although they were still concerned about the Federal Reserve’s interest rate outlook
The world’s largest cryptocurrency rose 1.3% to $98,304.0 by 10:29 ET (15:29 GMT).
The cryptocurrency, which has struggled to break out of its recent consolidation phase, was set to gain nearly 1% this week.
Gains were capped as the Fed has maintained its stance that it was in no rush to reduce interest rates this year, citing sticky inflation.
Higher interest rates and elevated inflation levels typically spark liquidity fears, pushing market participants away from speculative assets like crypto.
Hawkish Fed outlook keeps Bitcoin range-bound
Governor Adriana Kugler stated on Thursday that the central bank should maintain its current short-term borrowing rate in the range of 4.25% to 4.50% for some time to address elevated inflation.
The Fed’s decision to keep interest rates elevated aims to temper economic activity and control inflation. However, this approach can have a cooling effect on speculative investments, including cryptocurrencies.
While the Federal Reserve’s stance on interest rates remains a critical factor for financial markets, Bitcoin’s current performance indicates a complex interplay of influences.
Analysts believe that investors are weighing the potential for long-term gains against the backdrop of monetary policy and economic indicators.
US SEC to entirely drop lawsuit against Coinbase (NASDAQ:COIN), crypto exchange says
The U.S. Securities and Exchange Commission (SEC) plans to drop its lawsuit against Coinbase, the crypto exchange said on Friday, potentially marking a major shift in its stance on crypto regulation. The lawsuit, once seen as a significant threat to the exchange and the broader industry, is part of a broader policy shift under the SEC’s new Republican leadership.
Since President Donald Trump took office, the SEC has moved swiftly to reshape its crypto oversight, forming a dedicated task force and rescinding key accounting guidance. Even before rewriting regulations, the agency was expected to review ongoing litigation and potentially withdraw cases, Reuters previously reported. However, recommending the dismissal of the Coinbase lawsuit would be its most notable move yet.
"The war against crypto, at least as it applies to Coinbase, is over," said Paul Grewal, Coinbase’s Chief Legal Officer.
The SEC sued Coinbase and Binance in 2023, alleging that both exchanges violated securities laws. A separate lawsuit against Binance has been paused, reflecting the evolving regulatory landscape.
The SEC had accused Coinbase of enabling trading in unregistered securities and running an unregistered “staking” program, which rewarded customers for pooled asset verification on blockchain networks.
With the SEC shifting course, its legal approach to the crypto sector appears to be entering a new phase, particularly with the expected arrival of Trump’s nominee, Paul Atkins, as SEC chair.
Bitcoin purchasing platform Block reports lower profit
Block Inc (NYSE:XYZ) reported fourth-quarter earnings that fell short of Wall Street expectations, with adjusted earnings of 71 cents per share, below the projected 88 cents.
Net revenue reached $6.032 billion, a 4% year-over-year increase, but still under the anticipated $6.295 billion.
The company’s Bitcoin revenue declined, contributing to the overall profit shortfall, as reduced consumer demand and lower cryptocurrency prices impacted performance.
Founded in 2009 by Jack Dorsey and Jim McKelvey, originally as Square Inc ., the company rebranded to Block, Inc. in December 2021 to reflect its expanded ecosystem beyond payment processing.
Crypto price today: most altcoins tick up, fail to rally amid broad risk-off mood
Most altcoins were slightly higher, in line with Bitcoin’s movement, moving in narrow ranges as caution persisted amid macroeconomic headwinds.
World no.2 crypto Ether rose 2.3% to $2,788.69 on Friday.
Meanwhile, the world no. 3 crypto XRP slipped 1.7% lower to $2.64.
Solana gained 1.6%, and Cardano added 2.1%, while Polygon advanced 2.6%.
Among meme tokens, Dogecoin inched higher 1.1%, while $TRUMP was 0.7% lower.
Ayushman Ojha contributed to this report.