Bitcoin saw little change on Wednesday, remaining steady after last week's drop to a seven-month low, as investors cautiously weighed up the likelihood of a U.S. interest rate cut and braced for the possible appointment of a new Federal Reserve chair.
The world's largest cryptocurrency was trading down 0.5% at $87,536.7 at 10:39 AM Saudi time.
After falling below recent support levels to near $80,000, the cryptocurrency has recovered modestly to hover around $88,000, although it remains range-bound, with trading remaining cautious and risk sentiment subdued.
Bets on a Fed cut rise; focus on nominating a new chairman
Investor optimism about an interest rate cut rose in December. Weaker-than-expected US economic data revived hopes that the Federal Reserve would soon lower borrowing costs.
Meanwhile, speculation that Kevin Hassett—a close advisor to Donald Trump—might succeed the current Federal Reserve chairman added further momentum to the markets. Reports indicated that Hassett is seen as likely to support sharp interest rate cuts if appointed.
This possibility is seen by many as a signal towards a more accommodative monetary policy, a backdrop that often favors high-risk assets such as cryptocurrencies.
However, cryptocurrency investors remain cautious after the recent decline. The sharp drop and volatility have shaken confidence, and many are refraining from making large bets until macroeconomic and policy signals become clearer.
The Commodity Futures Trading Commission is seeking nominations for its new CEO Innovation Council.
The Commodity Futures Trading Commission (CFTC) is calling for nominations for its newly proposed CEO Innovation Board, as interim chair Carolyn D. Pham seeks to expand U.S. oversight of cryptocurrencies and digital asset markets.
The council, which was announced on Tuesday, is being formed to provide industry-led guidance on the regulation of digital assets, tokenized collateral, stablecoins, and other emerging market structure issues.
Nominations must be submitted by December 8 and should include the nominee's name, position, affiliation, and proposed areas of focus.
Pham described this move as crucial for getting off to a rapid start as the agency expands its regulation of digital assets.
Cryptocurrency prices today: Altcoins remain stable
Most alternative currencies also remained stable on Wednesday, trading in narrow ranges.
Ethereum, the world's second-largest cryptocurrency, rose 0.4% to $2,934.92.
XRP, the world's third-largest cryptocurrency, fell 2.2% to $2.19.
Solana rose slightly, while Cardano and Polygon remained largely stable.
Among the meme currencies, Dogecoin and $TRUMP remained virtually unchanged.
