Investing.com– Bitcoin moved little on Wednesday, steadying from a recent price rout as traders shied away from big bets ahead of key U.S. inflation data that is likely to factor into the outlook on interest rates.
The world’s largest cryptocurrency remained squarely within a $90,000 to $100,000 trading range established over the past few weeks, amid cooling optimism over friendly regulations under incoming President Donald Trump.
Broader crypto prices clocked heavy losses, as risk appetite worsened this week on heightened geopolitical tensions in the Middle East and Asia. Crypto markets were also subject to profit-taking after a strong run through November.
Bitcoin rose 0.6% to $97,483.5 by 00:53 ET (05:53 GMT).
CPI data awaited for more rate cues
Focus on Wednesday was squarely on upcoming consumer price index inflation data, which is expected to factor into the Federal Reserve’s plans for interest rates.
The reading comes just a week before a Fed meeting, where the central bank is widely expected to cut rates by 25 basis points.
But markets have turned more uncertain over the long-term outlook for interest rates, amid recent signs of sticky inflation. Expansionary and protectionist policies under Trump are also expected to underpin inflation, keeping rates higher in the long term.
High rates bode poorly for speculative assets such as crypto, given that they limit the amount of liquidity available for speculation.
MicroStrategy could be added to Nasdaq 100
MicroStrategy Incorporated (NASDAQ:MSTR)- the biggest corporate holder of Bitcoin- rose on Tuesday amid speculation that the stock could be added to the Nasdaq 100– a move that could spur further upside in the stock.
Microstrategy surged about 450% in value this year as its Bitcoin bet paid off, with the company continuing to issue more debt and buy more Bitcoin.
Bloomberg analyst Eric Balchunas said the firm’s addition to the Nasdaq 100 could invite net buying of at least $2.1 billion Microstrategy shares by exchange-traded funds to gain exposure.
Crypto price today: altcoins mixed after sharp losses
Among broader crypto prices, most major altcoins were a mixed bag on Wednesday after being walloped by heavy profit-taking in recent sessions. But most tokens were still trading substantially higher for the year.
World no.2 crypto Ether fell 1.1% to $3,661.36. XRP steadied at $2.3368 after rebounding from a 10-day low in the prior session.
Solana rose 1.3%, while Cardano and Polygon were flat. Among meme tokens, Dogecoin fell 3.4%.
