Bitcoin price today: rises above $97k but fresh catalysts still absent

Investing.com– Bitcoin edged higher in the past 24 hours as investors assessed the Federal Reserve’s January meeting minutes, which pointed to inflation risks linked to proposed tariffs and immigration policies.

Still, the cryptocurrency, which has struggled to break out of its recent consolidation phase, continued moving in tight ranges as market participants awaited fresh catalysts to drive the next move.  

Bitcoin climbed 1.1% to $97,188.0 by 10:29  ET (15:29 GMT).

The token had gained nearly 1% on Wednesday after renewed diplomatic engagements between the U.S. and Russia. 

Reports of resumed talks aimed at resolving the ongoing Russia-Ukraine conflict had slightly bolstered market optimism, potentially easing global inflation concerns. But, Bitcoin could not sustain a rally, reflected in its tepid moves.

Fed officials want ‘further progress’ on inflation before slashing rates

Federal Reserve officials signaled last month that they require “further progress on inflation” before considering any additional interest rate cuts. The central bank opted to keep monetary policy unchanged amid ongoing economic uncertainty.

Released on Wednesday, minutes from the Federal Open Market Committee’s January meeting, which took place shortly after Donald Trump’s return to the White House, signaled that most policymakers favored a “careful” approach to adjusting rates. Officials viewed it as necessary to maintain a “restrictive” stance, citing concerns about inflation risks and the potential economic impact of the new administration’s policies.

“Participants indicated that, provided the economy remained near maximum employment, they would want to see further progress on inflation before making additional adjustments to the target range for the federal funds rate,” the minutes stated.

Officials also emphasized that monetary policy decisions were not on a predetermined course, leaving room for a range of outcomes.

After reducing its benchmark interest rate by a full percentage point in 2024, the Fed left it steady last month at a target range of 4.25% to 4.5%.

Despite today’s uptick, Bitcoin’s price performance lately remains muted as broader financial markets grapple with mixed signals on the global economic landscape. 

Recent developments, including the potential for increased U.S. tariffs on auto, semiconductor, and pharma imports, have added to the risk-off sentiment, weighing on risk assets like Bitcoin.  

Reflecting the cautious tone, trading volumes in the crypto market have remained subdued. The lack of participation has left Bitcoin trapped in a narrow range, with technical analysts noting that a breakout in either direction could provide the momentum needed to reignite market activity.  

Analysts said that Bitcoin appears to be in a holding pattern, with investors awaiting clearer signals before committing to significant positions.

SEC establishes new unit to safeguard investors against crypto and AI fraud

The U.S. Securities and Exchange Commission (SEC) is establishing a new division to safeguard investors from misconduct in cryptocurrency and artificial intelligence. The Cyber and Emerging Technologies Unit (CETU) will replace the Crypto Assets and Cyber Unit, which was created in 2022 under Biden administration. 

Led by Laura D’Allaird, a longtime SEC official and former co-chief of the previous unit, CETU will focus on fraud involving AI, machine learning, and blockchain technology.

“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow,” said SEC Acting Chair Mark Uyeda. “It will root out those seeking to misuse innovation to harm investors and diminish confidence in new technologies.”

Crypto price today: limited gains in altcoins

Altcoins were mixed on Thursday but saw marginal moves in line with Bitcoin’s movement.

World no.2 crypto Ether ticked up 0.9% to $2,731.27 on Thursday.

World no. 3 crypto XRP added 3% to $2.69.

Solana gained 1.3%, and Cardano rose 3.6%, while Polygon edged up 0.2%.

Among meme tokens, Dogecoin traded flat, while $TRUMP ticked 0.8% lower.

Ayushman Ojha contributed to this report.