The world’s largest cryptocurrency last traded 1.4% lower at $90,639 by 09:02 ET (14:02 GMT).
Earlier this week, Bitcoin had briefly fallen toward $84,000, its lowest level in nearly a month, after a wave of risk-off sentiment triggered heavy leveraged liquidations across crypto markets.
Still, a sharp rebound mid-week put Bitcoin on track for a marginal weekly rise.
Fed cut bets remain firm; PCE report on tap
The recovery that followed was fuelled in part by growing conviction that the Federal Reserve could cut rates next week.
Thursday’s U.S. jobless claims data showed weekly filings fell sharply to their lowest level in more than three years, reinforcing the view that labour market conditions are cooling and that the Fed may have room to begin easing policy.
The prospect of lower borrowing costs typically benefits risk assets, including cryptocurrencies.
Still, trading remained cautious ahead of Friday’s U.S. Personal Consumption Expenditures (PCE) inflation report -- the Fed’s preferred price gauge. A softer reading could strengthen the case for a rate cut.
Reports also noted that institutional inflows have slowed compared with earlier quarters, leaving Bitcoin more vulnerable to rapid price swings driven by derivatives activity and sentiment shifts.
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BofA to allow crypto exposure to wealth clients
- Bank of America (NYSE:BAC) said on Thursday it will begin allowing its wealth advisers to recommend crypto allocations to client portfolios starting January 2026, marking a major shift for one of Wall Street’s largest banks.
- 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) with a recommended allocation of 1% to 4% of a client’s portfolio.
- The bank said the change reflects growing client interest in digital assets and a desire by some investors for exposure to “thematic innovation,” while emphasising the risks and volatility associated with cryptocurrencies.
- Starting Jan. 5, Bank of America strategists will begin covering four major Bitcoin ETFs -- including offerings from Bitwise, Fidelity, Grayscale and BlackRock -- to support the new recommendation framework.
Bitcoin’s drawdown clears the way for a return to macro drivers, BCA says Bitcoin’s sharp drawdown reflects a “capitulation of excess speculation rather than a shift in fundamentals,” as micro catalysts, record liquidations and collapsing sentiment drove the move, according to BCA Research.
The macroeconomic research firm notes that treasury-company premiums have flipped to discounts, supply-in-profit has fallen to levels consistent with prior lows, and the Fear and Greed Index has returned to 2022-type extremes.
With leverage largely flushed, BCA argues that the asset is now positioned to “re-anchor to macro drivers as institutional demand continues to build,” supported by ongoing ETF inflows, new platforms opening to crypto exposure, and Bitcoin’s role as “global wealth’s insurance asset” in an environment of expanding demand for alternative reserves.
Crypto price today: altcoins fall, XRP slips 3%
Most altcoins edged lower on Friday, tracking Bitcoin’s moves amid a cautious mood.
World no.2 crypto Ethereum fell 2.1% to $3,102.14.
World no. 3 crypto XRP declined nearly 3% to $2.06.
Solana eased 4.4%, while Cardano slipped 4% and Polygon retreated around 3%.
Among meme tokens, Dogecoin and $TRUMP slid around 4% and 2.8%, respectively.
