Bitcoin moved slightly lower on Friday but still held on to most of the gains from its strong mid-week rebound. Traders remained focused on expectations for a potential U.S. Federal Reserve rate cut and awaited key inflation data.
The world’s largest cryptocurrency was last down 1.1% at $92,146.6 by 01:69 ET (05:49 GMT).
Earlier in the week, Bitcoin briefly dropped toward $84,000. This marked its lowest level in almost a month and came after a wave of risk-off sentiment triggered heavy liquidations across leveraged crypto positions.
However, a sharp recovery in the following days put Bitcoin on track for a weekly gain of around 1%.
Fed Cut Expectations Grow; PCE Inflation Report Ahead
The rebound was supported by growing confidence that the Federal Reserve could move ahead with a rate cut next week.
On Thursday, U.S. jobless claims fell sharply to their lowest point in more than three years. This signaled easing labour market conditions and strengthened the argument that the Fed may have room to begin trimming interest rates.
Lower borrowing costs generally support risk assets such as cryptocurrencies.
Even so, traders stayed cautious ahead of Friday’s U.S. Personal Consumption Expenditures (PCE) inflation report. This indicator is the Fed’s preferred inflation measure, and a softer reading could reinforce expectations for a rate cut.
Reports also suggested that institutional inflows have slowed compared with earlier in the year. This has left Bitcoin more vulnerable to rapid price moves driven by derivatives activity and quick shifts in market sentiment.
Bank of America to Allow Crypto Exposure for Wealth Clients
Bank of America (NYSE:BAC) announced on Thursday that it will allow its wealth advisers to recommend crypto exposure to clients beginning in January 2026. This marks a significant shift for one of Wall Street’s largest institutions.
Under the new policy, advisers at Bank of America Private Bank, Merrill, and Merrill Edge will be able to suggest regulated crypto exchange-traded products (ETPs). Recommended allocations will range from 1% to 4% of a client’s portfolio.
The bank said the policy change reflects rising client interest in digital assets and increased demand for exposure to “thematic innovation.” However, it also stressed the risks and volatility involved in cryptocurrencies.
Starting January 5, Bank of America strategists will begin covering four major Bitcoin ETFs from Bitwise, Fidelity, Grayscale, and BlackRock to support this new advisory framework.
Crypto Prices Today: Altcoins Decline, XRP Drops 5%
Most major altcoins traded lower on Thursday, following Bitcoin’s downward move and the broader cautious sentiment.
Ethereum, the world’s second-largest cryptocurrency, slipped 1.3% to $3,163.92.
XRP fell nearly 5% to $2.07.
Solana declined 3.5%, while Cardano dropped 2.5% and Polygon also lost 3.5%.
Among meme tokens, both Dogecoin and $TRUMP retreated 2%.
