Bitcoin slides from $100k due to profit-taking and anticipation of U.S. interest rate cues

From Investing.com

December 6, 2024 01:31 AM:

Bitcoin fell in Asian trade on Friday after a brief rally past $100,000, as profit-taking ensued on anticipation of U.S. interest rate cues. The cryptocurrency dropped 4.5% to $97,830.3 after hitting a record high of $103,719.4. Broader crypto movements were subdued in anticipation of key U.S. interest rate data.

Trump appointed David Sacks as White House AI and crypto advisor, signaling a pro-crypto stance. Sacks will advise on crypto and AI regulation, following the creation of a crypto advisory council. Trump’s Treasury and Commerce Secretary picks also support deregulation and digital assets, with former SEC Commissioner Paul Atkins expected to lead the agency.

Citi analysts warned that Bitcoin’s dominance in crypto markets could diminish with increased regulatory clarity, allowing smaller coins with real use cases to thrive. They noted that Bitcoin’s classification as a commodity limits its utility, potentially benefiting other cryptocurrencies in the long run. Citi also downplayed Bitcoin’s role as a reserve asset.

Altcoins mirrored Bitcoin’s losses on Friday but were on track for a strong week. Ethereum rose 1.8% to $3,918.19, with a 3.5% weekly gain. Cardano saw a 1.8% increase and a 21% weekly gain, while XRP hit a six-year high on speculation of a dropped SEC lawsuit. Dogecoin and Litecoin traded flat, while Shiba Inu fell 2.1%.

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