Bitcoin Price Holds Steady at $96K as Altcoin Rally Slows: Market Updates and Key Insights

 Bitcoin Stable Below $100K as Traders Wait for US Monetary Policy and Trump’s Crypto Plans

Bitcoin traded steady on Wednesday, staying below the $100,000 threshold as traders waited for key information on US monetary policy and President-elect Donald Trump’s planned crypto policies. The broader crypto market remained similarly cautious, with altcoin rallies cooling off amid speculation on regulatory and economic cues.

 Bitcoin Stays at $96,000: A Deep Dive

By early morning Wednesday (ET), BTC rose slightly by 0.3% to $96,418.1, remaining well within a well-established range of $90,000 to $100,000 during the last two weeks.

Even though a sharp rally after Trump’s victory in the 2024 U.S. presidential election was seen, the cryptocurrency failed to break the barrier of $100,000.

The traders have been highly vigilant of Trump’s crypto position. His presidency is regarded as a possible turning point for the digital currency sector due to his pro-crypto reform promises.

 Trump’s Crypto Policies Under the Microscope

The crypto market is watching closely Trump’s cabinet picks and initial policy direction, which will define the industry to a great extent.

Key Policy Promises:

1. Making America the Crypto Capital: Trump has promised to make America the leader in cryptocurrency innovation and adoption.
2. Bitcoin National Reserve: The President-elect has floated the idea of creating a national Bitcoin reserve to strengthen the currency’s adoption.

Pro-Crypto Cabinet Picks:

Trump’s reported choices for Treasury Secretary and Secretary of Commerce are both crypto-friendly, signaling a potentially supportive regulatory framework.

His rumored designee for SEC Chair, after Gary Gensler announced he will resign in January, is reportedly friendly to cryptocurrency markets.

Proposed Change in Regulation:

Trump’s administration is apparently thinking of moving oversight of the cryptocurrency market from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). The move is a potential boon for the market since the CFTC is usually seen as friendlier to crypto.

However, many question if all of the promises can be fulfilled. Analysts argue that the planned Bitcoin reserve has a lot against it; mainly, given the focus of the administration and the rest of the government on keeping the dollar up as the reserve currency.

This emerged on Wednesday after recent reports pointed to the U.S. government mobilizing around $1.9 billion worth of Bitcoin to an exchange, further causing anxiety on a potential large-scale sell-off. Such an action would heavily weigh down prices with a huge downward pressure against Bitcoin, thus upsetting stability.

 Altcoin Market: Cooling off after recent rallies

As U.S. monetary policy announcements and regulatory updates continue, the altcoin market reflects the cautious trend that had been experienced in Bitcoin yesterday.

 Key Altcoin Movements:

Ether (ETH): The second-largest cryptocurrency edged up 0.9% to $3,666. Ether has shown resilience, maintaining steady gains amid market uncertainty.

XRP: After a remarkable rally to six-year highs, XRP fell 1% to $2.6010. Speculation remains rife that Trump’s leadership will result in the SEC dropping its longstanding lawsuit against Ripple, XRP’s issuer.

Solana (SOL): Outperformed the market with a 3.9% gain, continuing its upward trend.

Cardano (ADA): Down 5.4%, a mixed bag in altcoins.

Polygon (MATIC): Steady, no direction with the price.

 Meme Coins:

Dogecoin (DOGE): Down 1.1%, meme coin interest fell with overall caution in the market.

 Federal Reserve Cues Loom Large

More about this: The crypto market, though, was also awaiting more detail from the upcoming updates to U.S. monetary policy, which will be communicated through Fed Chair Jerome Powell at some time during Wednesday and through nonfarm payrolls data to be released on Friday.

The Fed’s rate environment is likely to drive trends in the short run market. Higher interest rates, obviously, are negative for risk assets, including cryptocurrencies as that increases the attractiveness of conventional safe havens like bonds.

 Bitcoin and Crypto Market Outlook

While stability near $96,000 suggests underlying strength, breaking the $100,000 barrier will require a big catalyst. Trump’s crypto-friendly policies, if implemented successfully, could be just that. But skepticism about his ability to deliver on promises like a Bitcoin reserve remains.

Regarding the altcoins, the overall trend is quite consolidating because any move still largely hinders upon forthcoming regulatory or monetary policies.

Movements here are awaiting key upcoming U.S. government regulatory frameworks and significant indications in Federal Reserve economic policies.

The small bitcoin uptick Wednesday shows cautious optimism within the market as traders go through a landscape influenced by regulatory potential shifts and monetary policy decisions. Altcoins, cooling down from their highs, still show promise of renewed interest in them as actions by Trump unfold and as general market conditions evolve.

At least for now, it is holding pattern within the crypto market, waiting on the next wave of cues to decide direction.