Bitcoin (
$BTC ) once again slipped under the $102,000 mark on Wednesday, erasing early-session gains as U.S. market hours began. The downturn reflects fading American investor appetite and renewed uncertainty around the Federal Reserve’s next policy move.
📉 BTC and Altcoins Slide as Gains Vanish
After briefly topping $105,000 earlier in the day, Bitcoin dropped over 3% within hours, trading near $101,186.87 at press time. Major altcoins followed the same trajectory — Ether (
$ETH ) slid almost 5% to $3,396, Solana (
$SOL ) dropped to $152, and XRP sank below $2.34, extending a market-wide decline.
Crypto-related equities also faced selling pressure. Shares of Circle (CRCL), the issuer of USDC stablecoin, plunged 9.5% post-earnings, while major miners and AI-linked data firms such as Bitfarms (BITF), Bitdeer (BTDR), Cipher Mining (CIFR), Hive Digital (HIVE), Hut 8 (HUT), and Iris Energy (IREN) all fell between 5% and 10%.
🇺🇸 Weak U.S. Demand Deepens Bitcoin Pressure
The sharp retracement highlights what’s become a consistent trend in recent weeks — weakness during U.S. trading hours. A key indicator reflecting this, the Coinbase Premium Index, has remained negative since late October, signaling subdued domestic buying interest.
This index measures the price gap between Bitcoin on Coinbase — a platform favored by U.S. institutions — and Binance, which attracts offshore retail traders.
According to CryptoQuant, this marks the longest negative streak since the March–April correction, when BTC plunged from above $100K to $75K.
💵 Fed Division Casts Doubt Over December Rate Cut
The macro backdrop isn’t helping. The Federal Reserve is increasingly split over whether inflation or a softening labor market poses a greater risk, clouding expectations for a December rate cut that markets had once largely priced in.
A Wall Street Journal report noted that the recent government shutdown, which delayed key inflation and employment data, has forced Fed officials to rely on private metrics — widening the policy divide.
Now, analysts describe the odds of a December rate cut as a “toss-up.” Even if the Fed does move forward, it may come with cautious guidance and a higher bar for further easing.
🪙 ETF Outflows Reflect Market Uncertainty
Adding to the bearish tone, U.S.-listed spot Bitcoin ETFs have recorded over $1.8 billion in net outflows since the Fed’s October meeting. That exodus underscores growing investor caution amid a lack of clear positive catalysts.
With American demand fading and policy uncertainty rising, Bitcoin’s short-term momentum remains fragile — and traders are watching closely to see if support above $100K can hold.
Market Wrap:
Bitcoin struggles below $102K amid weak U.S. demand and Fed policy uncertainty.
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#Bitcoin #CryptoMarket #CoinbasePremium #CryptoQuant #MarketUpdate