Bitcoin Loses Momentum After Two Straight Days of Gains

Bitcoin struggled for direction on Thursday and moved in a tight range after two consecutive sessions of gains, while investors were cautious due to macroeconomic pressures

Bitcoin remained largely directionless on Thursday and traded within a narrow range after two sessions of gains, as investors remained cautious amid macroeconomic pressures following the U.S. Federal Reserve's hawkish pivot.

Bitcoin slipped 0.1% to $98,124.6 by 01:35 ET (06:35 GMT).

It fell below the key $100,000 level last week after Fed officials signaled a slower pace for future cuts.

Bitcoin's momentum fizzles after two straight days of gains

The token rose nearly 5% in the previous two sessions, but that positive momentum appeared to fizzle out on Thursday as investors grew cautious about the outlook for speculative assets, such as cryptocurrencies, after the Fed signaled fewer interest rate cuts in 2025.

Last week, Bitcoin snapped its first weekly drop since Trump's early November election win, as the Fed meeting stalled the post-election rally.

The rally had pushed prices to an all-time high of $108,244.9, after which prices fell on profit-taking amid macroeconomic pressures, as signaled by the Fed rate outlook.

The central bank cut rates by 25 basis points, but indicated only two rate cuts for the upcoming year, versus previous expectations for four cuts.

This pivot had investors reassessing their positions in speculative assets, such as Bitcoin, contributing to its price decline.

Russia using Bitcoin in foreign trade

Finance Minister Anton Siluanov said on Wednesday that Russian companies have begun using Bitcoin and other cryptocurrencies for international payments, following legislative changes.

Sanctions have made trade with key partners, such as China and Turkey, more difficult, as local banks are exercising extreme caution with Russia-related transactions to avoid attracting the attention of Western regulators.

In response, Russia legalized the use of cryptocurrencies in foreign trade this year and has moved to regulate cryptocurrency mining, including Bitcoin. As a global leader in Bitcoin mining, the country is using its position to navigate economic restrictions.

Crypto prices today: Most altcoins seen edging lower

Other cryptocurrencies fell on Thursday as demand for speculative assets remained subdued after the hawkish Fed shifted investor sentiment.

World no.2 crypto Ether fell 1.3% to $3,443.05. Ether rose for the third session on Thursday, but was still far from recovering fully from last week's slump.

World no.3 crypto XRP fell 2% to $2.2462.

Solana fell 2.2% and Polygon dropped 4.6%, while Cardano fell 3.3%. Among meme tokens, Dogecoin lost 2%.