PakGazette– Bitcoin fell on Wednesday after a three-day winning streak and a record high, as the digital currency saw profit-taking ahead of the Federal Reserve’s interest rate decision.
fell 2.4% to $103,688.0 at 01:13 ET (0613 GMT), after breaking above the $108,000 level a day earlier.
The largest cryptocurrency hit an all-time high of $108,244 for a brief period on Tuesday. This came after incoming President Donald Trump raised the prospect of a strategic Bitcoin reserve during an interview with CNBC last week.
Bitcoin Backed by Whale Trading and Strategic Reserve Outlook
Trump had promised to introduce cryptocurrency-friendly regulations if elected, and his recent nominations for key cabinet positions and regulatory roles showed strong pro-cryptocurrency leanings.
However, analysts still have doubts about the feasibility of establishing a Bitcoin reserve, especially regarding the mechanics of its formation.
Analysts believe a strategic reserve is unlikely, given Trump’s unwavering belief in the supremacy of the dollar.
Additionally, recent data indicates that large Bitcoin holders, known as whales, are significantly influencing the cryptocurrency’s price movements.
According to Ali MartÃnez, an on-chain analyst, Bitcoin whales had acquired 70,000 bitcoins this week as of Tuesday.
Analysts believe that increasing demand from whales has outstripped available supply, fueling the continued rise in Bitcoin prices.
In total, only 900 bitcoins can be mined every 48 hours, which is far from satisfying the significant demand of Bitcoin whales.
Therefore, there is growing concern that if this momentum persists, a major supply crisis could be imminent.
Crypto Price Today: Most Altcoins Fall Ahead of Fed Rate Decision, Cardano Rises
Other cryptocurrencies also followed Bitcoin’s lead as traders became cautious with the Federal Reserve meeting underway. Investors also took some profits from altcoins, which posted strong gains in recent sessions.
The world’s No. 2 cryptocurrency fell 4.7% to $3,839.41, extending its decline. The world’s number 3 cryptocurrency fell 0.3% to $2.51.
fell a little and fell by 6.3%, while it rose by more than 2%. Among meme tokens, it lost 0.8%.
The Fed is expected to do so on Wednesday. But the focus is on the central bank’s long-term outlook on rates, especially in the face of sticky inflation and a resilient economy.
The central bank may suggest a slower pace of rate cuts in 2025, implying rates could remain higher for an extended period. This scenario could present challenges for cryptocurrency prices.
