Bitcoin Climbs for Third Straight Day but Faces Fed Policy Headwinds

Bitcoin extended its winning streak on Friday, rising for the third consecutive day, as some investors shrugged off concerns over U.S. tariffs. However, uncertainty surrounding the Federal Reserve’s interest rate policy kept gains in check.

As of 01:36 ET (6:36 GMT):

• Bitcoin rose 1.6% to $98,409.2.
• It was on track for a weekly gain of nearly 1%, despite remaining in a tight consolidation phase.

Fed’s Hawkish Stance Limits Bitcoin’s Upside

• Federal Reserve Governor Adriana Kugler reiterated on Thursday that the Fed would maintain its short-term borrowing rate at 4.25% – 4.50% to combat inflation.
• Elevated interest rates and persistent inflation typically dampen risk appetite, reducing liquidity in speculative assets like cryptocurrencies.

While some investors remain optimistic about Bitcoin’s long-term outlook, the Fed’s restrictive monetary policy remains a key challenge for further upside.

Block Inc. Reports Weak Q4 Earnings Amid Crypto Revenue Decline

• Adjusted earnings per share came in at 71 cents, missing Wall Street expectations of 88 cents.
• Net revenue increased by 4% year-over-year to $6.032 billion, but fell short of the forecasted $6.295 billion.
• Bitcoin revenue declined, as lower consumer demand and crypto price fluctuations weighed on financial performance.

Block Inc., formerly Square Inc., rebranded in December 2021 to reflect its broader financial services ecosystem beyond payment processing.

Bitcoin’s Outlook: Balancing Macro Pressures with Long-Term Growth

Despite macro headwinds, Bitcoin’s steady gains suggest that investors continue to weigh its long-term potential against short-term monetary policy risks.