Bitcoin Holds Steady Near $104,000 as Market Awaits Policy Clarity from Washington
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Bitcoin traded sideways on Wednesday around the $104,000 level as the cryptocurrency market paused for breath amid lighter holiday volumes and anticipation of incoming U.S. policy developments.
After a strong rebound earlier in the week that carried prices back above $105,000, bitcoin has settled into a narrow range with reduced volatility. Ethereum similarly consolidated near $4,100, while major altcoins showed mixed performance.
Spot bitcoin exchange-traded funds continued to see steady but not spectacular inflows, suggesting institutional investors are comfortable holding positions rather than aggressively adding at current levels. BlackRock and Fidelity products remained the primary vehicles for new capital.
Attention remains fixed on Washington, where the Trump transition team is reportedly finalizing nominations for key financial regulatory roles. Industry sources indicate that several crypto-sympathetic candidates are under serious consideration for positions at the SEC, Treasury, and CFTC.
“Concrete policy announcements could be the catalyst for the next meaningful leg higher,” said Chris Newhouse, analyst at Cumberland Labs. “Clarity on banking access, taxation, and enforcement priorities would unlock substantial sidelined capital.”
Corporate adoption news provided underlying support. A regional U.S. bank announced pilot programs for crypto custody services, while another public company disclosed a modest bitcoin treasury addition in its latest quarterly filing.
On-chain metrics remain encouraging. Exchange balances continue trending lower as holders move coins to self-custody, and the network’s hash rate hit another all-time high, reflecting robust miner commitment despite elevated difficulty.
Technical analysts note strong support near the 50-day moving average around $98,000, with resistance clustered near recent highs. Options markets show balanced positioning heading into year-end.
Global developments also contributed positively. Several emerging market nations reported progress on regulatory frameworks, and institutional-grade infrastructure providers announced expanded services.
While short-term direction lacks conviction, the longer-term outlook stays bullish for most observers. Many Wall Street strategists have raised 2026 price targets, citing potential regulatory tailwinds and bitcoin’s growing role as a macro asset.
For now, the market appears content to consolidate gains made since the November election, building energy for whatever catalysts emerge in early 2026.
