Bitcoin Rises for Third Consecutive Day, but Bullish Momentum is Limited
Key Factors Influencing Bitcoin’s Price:
- Fed’s interest rate policy
- Macroeconomic risks
- Weaker-than-expected earnings from Block, a Bitcoin trading platform
Fed’s Policy Keeps Bitcoin in a Tight Range
On Thursday, Federal Reserve official Adriana Kugler reiterated that interest rates will remain at 4.25%-4.50% for some time, citing persistent inflation. This:
- Limits economic activity
- Reduces the appeal of speculative assets like cryptocurrencies
- Creates volatility in risk markets
Block’s Weak Earnings Impact Crypto Sentiment
- Block’s Q4 earnings: 71 cents per share (below expectations of 88 cents)
- Revenue: $6.032 billion (below expectations of $6.295 billion)
The drop in Bitcoin-related revenue contributed to the weaker earnings, reflecting declining consumer demand and market caution.
Altcoin Performance
- Ethereum (ETH): +1% to $2,758.50
- XRP: -0.6% to $2.6663
- Solana (SOL): +2.5%
- Cardano (ADA): +1.8%
- Polygon (MATIC): +2.2%
Dogecoin (DOGE) dropped 0.6%, while $TRUMP lost 0.7%.
Bitcoin Outlook: What’s Next?
While Bitcoin’s upward trend remains intact, further growth depends on inflation data, Fed policy, and institutional investor sentiment. If the Fed maintains its hawkish stance, Bitcoin may continue facing resistance.
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