Investing.com — Bitcoin was little changed on Wednesday, stabilizing from a recent sell-off as traders avoided big bets ahead of key U.S. inflation data that is likely to be factored into interest rate forecasts.
The world's largest cryptocurrency remains firmly within the $90,000 to $100,000 trading range set in the past few weeks as optimism about friendly regulation under President-elect Donald Trump wanes. Ta.
This week, rising geopolitical tensions in the Middle East and Asia have soured risk appetite, with widespread crypto prices posting sharp declines. The virtual currency market was also a target of profit-taking selling after performing well until November.
By 12:53 a.m. ET (5:53 p.m. Japan time), the stock was up 0.6% at $97,483.5.
CPI data awaits further interest rate indicators
The focus on Wednesday was squarely on upcoming inflation statistics that are expected to be factored into the Federal Reserve's interest rate plans.
The announcement comes just a week before the central bank's widely anticipated Fed meeting.
However, recent signs of persistent inflation have increased market uncertainty over the long-term outlook for interest rates. Expansionary and protectionist policies under President Trump are also expected to support inflation and raise interest rates over time.
High interest rates bode poorly for speculative assets such as cryptocurrencies, given that they limit the amount of liquidity available for speculation.
MicroStrategy could be added to the Nasdaq 100
MicroStrategy Incorporated (NASDAQ:), Bitcoin's largest corporate holder, rose on Tuesday amid speculation that its shares could be added to Bitcoin, leading to further gains in the stock price. There is a possibility of spurring.
MicroStrategy's bet on Bitcoin paid off this year, as it continued to issue corporate bonds and buy Bitcoin, causing its value to soar by about 450%.
Bloomberg analyst Eric Balchunas said the company's addition to the Nasdaq 100 could lead to at least $2.1 billion in net buying of MicroStrategy stock by exchange-traded funds to gain exposure.
Cryptocurrency prices today: Altcoins are mixed after a big drop
Most major altcoins were mixed on Wednesday after experiencing heavy profit-taking in recent sessions amid a wide range of crypto prices. However, most tokens were still trading at significantly higher prices this year.
The world's second-largest cryptocurrency fell 1.1% to $3,661.36. After rebounding from a 10-day low in the previous session, it stabilized at $2.3368.
It rose 1.3%, but and remained unchanged. Meme tokens fell 3.4%.
