Bitcoin extended its recent downtrend on Wednesday, slipping below the $103,000 mark as optimism around the U.S. government’s progress toward reopening failed to lift demand in digital asset markets.
The flagship cryptocurrency dropped 1.8% to $103,344 by 00:28 ET (05:28 GMT), after briefly touching an intraday low near $102,738 earlier in the session.
Despite a mild rebound in broader risk assets, Bitcoin has struggled to recover from its sharp early-November selloff, when prices briefly dipped below the psychological $100,000 level. Traders appeared to favor equities over crypto amid improving risk appetite.
U.S. government edges toward reopening
Washington moved closer to ending its record-long government shutdown this week after the Senate passed a short-term funding bill extending operations through January 30. The measure now heads to the House of Representatives, which is expected to approve it before sending it to President Donald Trump for final sign-off.
While hopes for a resolution supported stock markets, the momentum did not translate into the crypto space. Market sentiment remained cautious as investors assessed growing concerns over corporate Bitcoin holdings and treasury management among major firms.
China accuses U.S. of massive Bitcoin theft
Tensions rose between Washington and Beijing after China’s cybersecurity regulator accused the U.S. government of orchestrating the theft of roughly 127,000 Bitcoins (valued at about $13 billion) from China’s LuBian mining pool in December 2020— one of the largest crypto thefts on record.
Chinese authorities labeled the incident a “state-sponsored cyber operation”, a claim that further strains already tense U.S.-China relations.
JPMorgan rolls out digital deposit token
In a separate development, JPMorgan Chase & Co. (NYSE:JPM) introduced its JPM Coin deposit token to institutional clients. The token—representing dollar deposits held at the bank—enables blockchain-based transfers through Coinbase’s Base network, according to Bloomberg.
The rollout marks another step by major financial institutions expanding into blockchain-based settlement and tokenized payments.
Altcoins follow Bitcoin lower
Major altcoins mirrored Bitcoin’s losses. Ethereum (ETH) slipped 2.8% to $3,448, while XRP fell 3.1% to $2.39.
BNB, Cardano (ADA), and Solana (SOL) retreated 2.5%, 3.7%, and 5.9%, respectively.
Among meme coins, Dogecoin declined 3.4%, and $TRUMP token slid nearly 9%, tracking the broader market downturn.
