Bitcoin edged lower on Friday but held most of its gains from a sharp mid-week recovery, as traders remained focused on expectations of a U.S. Federal Reserve rate cut and awaited key inflation data.

The world’s largest cryptocurrency last traded 1.1% lower at $92,146.6 by 01:69 ET (05:49 GMT).

Earlier this week, Bitcoin had briefly fallen toward $84,000, its lowest level in nearly a month, after a wave of risk-off sentiment triggered heavy leveraged liquidations across crypto markets.

Still, a sharp rebound mid-week put Bitcoin on track for a 1% weekly rise.

Fed cut bets remain firm; PCE report on tap

The recovery that followed was fuelled in part by growing conviction that the Federal Reserve could cut rates next week.

Thursday’s U.S. jobless claims data showed weekly filings fell sharply to their lowest level in more than three years, reinforcing the view that labour market conditions are cooling and that the Fed may have room to begin easing policy.

The prospect of lower borrowing costs typically benefits risk assets, including cryptocurrencies.

Still, trading remained cautious ahead of Friday’s U.S. Personal Consumption Expenditures (PCE) inflation report -- the Fed’s preferred price gauge. A softer reading could strengthen the case for a rate cut.

Reports also noted that institutional inflows have slowed compared with earlier quarters, leaving Bitcoin more vulnerable to rapid price swings driven by derivatives activity and sentiment shifts.

BofA to allow crypto exposure to wealth clients

Bank of America said on Thursday it will begin allowing its wealth advisers to recommend crypto allocations to client portfolios starting January 2026, marking a major shift for one of Wall Street’s largest banks.

Under the new policy, advisers at Bank of America Private Bank, Merrill, and Merrill Edge will be able to suggest regulated crypto exchange-traded products (ETPs) with a recommended allocation of 1% to 4% of a client’s portfolio.

The bank said the change reflects growing client interest in digital assets and a desire by some investors for exposure to “thematic innovation,” while emphasising the risks and volatility associated with cryptocurrencies.

Starting Jan. 5, Bank of America strategists will begin covering four major Bitcoin ETFs -- including offerings from Bitwise, Fidelity, Grayscale and BlackRock -- to support the new recommendation framework.

Crypto price today: altcoins fall, XRP drops 5%

Most altcoins fell on Thursday, tracking Bitcoin’s moves amid a cautious mood.

World no.2 crypto Ethereum fell 1.3% to $3,163.92.

World no. 3 crypto XRP declined nearly 5% to $2.07.

Solana eased 3.5%, while Cardano slipped 2.5% and Polygon retreated 3.5%.

Among meme tokens, both Dogecoin and $TRUMP slipped 2%.