Bitcoin continued its downward momentum on Wednesday, slipping below $103,000, as optimism over the U.S. government’s reopening provided little support to the cryptocurrency market.
As of 05:28 GMT, Bitcoin was trading around $103,344, down nearly 1.8% on the day after touching an intraday low near $102,737. The leading cryptocurrency has faced persistent selling pressure since early November, when it briefly dropped below the $100,000 mark.
Despite a rebound in global risk sentiment, most investors are still favoring traditional markets like equities, leaving crypto assets struggling to gain traction.
U.S. Government Shutdown Nears Resolution
The U.S. Senate recently approved a short-term funding bill to reopen the government until January 30, marking a significant step toward ending the 42-day shutdown—the longest in U.S. history.
The measure now moves to the House of Representatives, where a favorable vote is expected before it reaches President Donald Trump for final approval.
While this development improved overall market confidence, the crypto sector saw limited impact, as traders remained cautious amid ongoing regulatory concerns and weak momentum in Bitcoin-linked institutions.
China Accuses the U.S. of Bitcoin Theft
In a bold statement, China’s cybersecurity agency accused the U.S. government of orchestrating a state-sponsored hack that allegedly stole 127,272 Bitcoins—worth roughly $13 billion—from China’s LuBian mining pool in December 2020.
Authorities in Beijing labeled it a “state-level hacker operation,” calling it one of the largest crypto thefts ever recorded. The allegation adds new geopolitical tension to an already volatile digital asset landscape.
JPMorgan Expands Digital Asset Presence
On the institutional front, JPMorgan Chase & Co. rolled out its JPM Coin, a blockchain-based deposit token designed for institutional clients.
The token represents U.S. dollar deposits held at the bank and enables seamless transactions through Base, a blockchain platform affiliated with Coinbase.
This move highlights how major financial institutions continue to integrate blockchain technology into traditional finance operations, bridging the gap between banking and digital assets.
Altcoins Decline Alongside Bitcoin
The broader crypto market mirrored Bitcoin’s weakness:
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Ethereum (ETH) fell 2.8% to $3,448
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XRP declined 3.1% to $2.39
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BNB dropped 2.5%, Cardano (ADA) slipped 3.7%, and Solana (SOL) lost 5.9%
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Among meme tokens, Dogecoin (DOGE) fell 3.4%, while $TRUMP dropped 8.8%
Overall, sentiment across digital assets remains cautious as investors await clearer direction—either from macroeconomic catalysts or renewed institutional inflows.
Final Thoughts
The market’s reaction to the U.S. government reopening shows that Bitcoin is still struggling to decouple from traditional risk sentiment. While institutions like JPMorgan continue to build within the blockchain space, retail confidence remains fragile.
Until stronger fundamentals or liquidity drivers appear, Bitcoin may continue to trade under pressure in the short term.
