Bitcoin Price Drops to $93k as US Economic Data and Policy Take Center Stage

Bitcoin saw a rise on Wednesday, bouncing back from recent losses as traders took profits and kept an eye on U.S. policy updates. The cryptocurrency has been on a downward trend since last week, with investors selling off after reaching record highs without breaking the $100,000 mark.

One factor affecting the market is U.S. President-elect Donald Trump’s talk of imposing more trade tariffs, causing concern about a potential trade war. Despite this, Bitcoin managed to climb 1.8% to $93,936.0 by 08:49 ET (13:49 GMT).

Focus this week has been on key U.S. economic data and Trump’s policies. The PCE Price Index, considered by the Federal Reserve for inflation estimates, is set to impact interest rate decisions. The Fed’s minutes from November’s meeting showed differing opinions on rate cuts, with officials leaning towards gradual easing. Additionally, an upcoming GDP data revision could reflect positively on the U.S. economy, potentially affecting rate cuts.

Traders are also eagerly awaiting what Trump’s policies will mean for crypto. He had previously expressed interest in making the U.S. a “crypto capital” and establishing a national Bitcoin reserve. With his inauguration approaching, market watchers are curious about concrete actions on crypto policy. Trump’s picks for Treasury Secretary and Commerce Secretary, Scott Bessent and Howard Lutnick, have shown support for crypto, bringing some optimism.

In other news, there are reports that Trump is considering giving the Commodity Futures Trading Commission (CFTC) more authority to regulate digital assets like Bitcoin and Ether. This move could shift regulatory power from the Securities and Exchange Commission (SEC) to the CFTC, potentially impacting the crypto sector.

Bitcoin’s positive movement spilled over into other cryptocurrencies, with Ether, XRP, Solana, Cardano, Polygon, and Dogecoin all showing gains in the Wednesday session. Ether jumped 5% to $3,488.35, while other tokens rose between 3.5% to 9%.

Overall, the crypto market seems to be responding to a mix of economic data, policy signals, and potential regulatory shifts, keeping investors engaged and watching for the next moves in this dynamic space.