Bitcoin slipped on Friday but held on to the bulk of its sharp mid-week recovery, as traders focused on expectations for a Federal Reserve rate cut and awaited key U.S. inflation data.
The world’s largest cryptocurrency fell 1.4% to $90,639 as of 09:02 Eastern time (14:02 GMT).
Earlier in the week, Bitcoin had dipped toward $84,000 — its lowest level in about a month — after a wave of risk aversion triggered major liquidations across leveraged crypto positions. Even so, the rapid rebound that followed has kept Bitcoin on track for a modest weekly gain.
Rate-Cut Bets Stay Firm as PCE Report Nears
The rebound was partly driven by growing confidence that the Federal Reserve could lower interest rates next week.
U.S. jobless claims fell sharply on Thursday to the lowest level in more than three years, reinforcing views that labor-market conditions are cooling and potentially giving the Fed room to begin easing policy. Risky assets — including cryptocurrencies — typically benefit when borrowing-cost expectations decline.
Still, trading remained cautious ahead of Friday’s U.S. Personal Consumption Expenditures (PCE) inflation report — the Fed’s preferred gauge. A softer reading would strengthen the case for a cut.
Reports also pointed to slower institutional inflows compared with earlier quarters, leaving Bitcoin more vulnerable to swings driven by derivatives activity and rapid shifts in sentiment.
Bank of America to Allow Crypto Exposure for Wealth-Management Clients
Bank of America (NYSE: BAC) said Thursday it will begin allowing wealth-management advisers to recommend limited crypto exposure for clients starting January 2026 — a major shift for one of Wall Street’s biggest banks.
Under the new policy, advisers in Bank of America Private Bank, Merrill, and Merrill Edge will be permitted to recommend regulated crypto exchange-traded products (ETPs) with suggested allocations of 1%–4% of a client portfolio.
The bank said the change reflects rising interest in digital assets and a desire among some investors to gain exposure to “thematic innovation,” while stressing crypto’s volatility and risks.
Beginning January 5, Bank of America analysts will initiate coverage on four major Bitcoin ETFs — including products from Bitwise, Fidelity, Grayscale, and BlackRock — as part of the new guidance framework.
BCA: Bitcoin Set for Re-Anchoring to Macro Drivers
Research firm BCA said Bitcoin’s recent sharp decline reflects “the capitulation of excess speculation rather than a shift in fundamentals,” citing short-term catalysts, record liquidations, and weakening sentiment.
BCA noted that premiums on Bitcoin-holding companies have turned into discounts, realized profitable supply has fallen to levels consistent with past market bottoms, and the fear-and-greed index has returned to extremes similar to those seen in 2022.
With leverage largely flushed out, BCA believes Bitcoin is now “positioned to reconnect with macroeconomic drivers as institutional demand continues to build,” supported by ongoing ETF inflows, expanded access to crypto platforms, and Bitcoin’s role as a “wealth-insurance asset” in an environment increasingly in need of alternative reserves.
Crypto Prices Today: Broad Declines, XRP Down 3%
Most major altcoins traded lower on Friday, tracking Bitcoin’s weakness amid a cautious market backdrop.
Ether — the second-largest cryptocurrency — fell 2.1% to $3,102.14.
XRP — the third-largest — dropped roughly 3% to $2.06.
