Bitcoin Remains Stuck at $87.500 but Altcoins Slide Down
Ethereum (ETH) is down 2.5% at $2,854, while altcoins are seeing widespread losses. BNB is slipping 2.5%, Ripple (XRP) is down 2.2%.
Quick overview
- Bitcoin is showing modest gains around $87,139, while the broader crypto market is trading lower.
- Investor sentiment is cautious due to recent Federal Reserve actions and upcoming U.S. inflation data.
- Analysts suggest Bitcoin could reach new all-time highs despite economic uncertainty, driven by institutional investments.
- Federal Reserve officials indicate that interest rates may still have room to ease, with uncertainty surrounding future policy moves.
The world’s leading cryptocurrency is finding stability, but markets are waiting for the U.S. inflation report to gauge the next bout of volatility.
The crypto market is trading broadly lower, with Bitcoin (BTC) as the main exception. BTC is posting modest gains and hovering around $87,139, according to Binance. Investor sentiment remains cautious after disappointment over the Federal Reserve’s rate cut and continued outflows from Bitcoin spot ETFs, with attention now firmly focused on the upcoming U.S. Consumer Price Index (CPI) data.
Ethereum (ETH) is down 2.5% at $2,854, while altcoins are seeing widespread losses. BNB is slipping 2.5%, Ripple (XRP) is down 2.2%, and Solana (SOL) is leading declines with a 3.1% drop.
Can Bitcoin Still Reach a New All-Time High?
While it may seem unrealistic for Bitcoin to surpass the $126,272 level amid economic uncertainty and tight liquidity weighing on risk assets, some analysts argue otherwise.
Bitwise CIO Matt Hougan and Grayscale Research believe Bitcoin will exceed its previous peak, even though 2026 is widely expected to be a year of consolidation or pullback. Historically, Bitcoin has followed a four-year cycle tied to halving events, with three years of strong gains followed by sharp corrections.
Hougan argues that the forces behind past cycles have weakened, while new structural drivers are emerging. “We believe the wave of institutional capital that began entering the space with the approval of spot Bitcoin ETFs in 2024 will accelerate in 2026, as platforms like Morgan Stanley, Wells Fargo, and Merrill Lynch begin allocating,” he said.
In what analysts call the “institutional era,” Bitcoin could reach new all-time highs, breaking away from its traditional four-year cycle.
Federal Reserve Signals in Focus
U.S. interest rates remain above their theoretical neutral level, while inflation—still above target—is expected to ease in the coming months, according to Federal Reserve Governor Christopher Waller.
Speaking to CNBC, Waller suggested the Fed’s policy rate is “perhaps 50 to 100 basis points above neutral,” referring to a level that neither stimulates nor restrains economic activity. “We still have some room to ease,” he said.
His comments follow the Fed’s quarter-point rate cut last week, which brought the target range to 3.50%–3.75%, as policymakers aimed to support the labor market despite persistent—though stable—inflation pressures.
Data released this week, delayed by a prolonged U.S. government shutdown and therefore not considered at the Fed’s December meeting, showed stronger-than-expected job growth in November, while the unemployment rate rose slightly more than anticipated.
Uncertainty now surrounds the Fed’s next move in early 2026. CME’s FedWatch tool currently assigns a roughly 73% probability that the central bank will keep rates unchanged at its January meeting.
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