Bitcoin prices displayed signs of weakness on Wednesday, hovering around $97,000 after experiencing a 3.5% decline the previous day. Despite recent announcements from former President Trump's crypto czar, the digital currency continues to face challenges. Meanwhile, the US service sector's economic activity expanded in January, although at a slower pace than anticipated.
The Institute for Supply Management (ISM) reported that the Services Purchasing Managers' Index (PMI) fell to 52.8 in January, below market expectations of 54.3. This decline indicates a slowdown in growth for the services sector. Additionally, the Prices Paid Index, which reflects inflation pressures, dropped to 60.4 from 64.4, suggesting easing inflationary trends.
In contrast, the Employment Index showed a slight improvement, rising to 52.3 in January. Despite this positive development, the US Dollar Index remained down by 0.6% on Wednesday, settling at 107.35 and staying below the 107.50 mark.
Gold prices reached near all-time highs close to $2,880, driven by a combination of factors including a weakened US Dollar, declining yields, and increased safe-haven demand. These elements have collectively contributed to the rise in gold prices, offering a stark contrast to Bitcoin's current struggles.
It is important to note that neither the author nor FXStreet is a registered investment advisor, and this article is not intended to serve as investment advice.