Bitcoin extended its recent losses on Wednesday as investors remained cautious ahead of key U.S. economic data and fresh comments from the Federal Reserve. The risk-off mood weighed on speculative assets, with cryptocurrencies facing renewed pressure.
The world’s largest cryptocurrency found limited support from major corporate holder Strategy Inc, which disclosed additional Bitcoin purchases. Dip buyers also stayed on the sidelines after Bitcoin plunged nearly 50% from its October record high.
Bitcoin was down almost 1% to $67,746.6 as of 01:19 ET (06:19 GMT).
Strategy adds $168 million in Bitcoin
Strategy announced on Tuesday that it bought 2,486 Bitcoin worth $168.4 million over the past week. The latest purchase brings the company’s total holdings to 717,131 coins. The average purchase price for last week’s acquisition was $67,710 per Bitcoin, slightly below current market levels.
This marks Strategy’s third Bitcoin purchase in February. The company financed the latest acquisition through additional stock issuances, raising concerns among some investors about potential equity dilution if such funding continues.
Earlier this week, Strategy stated it could withstand a Bitcoin price decline to as low as $8,000 while still meeting its debt obligations. However, these comments drew criticism, particularly amid fears that a prolonged downturn could eventually force the firm to liquidate part of its substantial Bitcoin holdings.
Crypto market today: Altcoins steady as US data looms
Broader cryptocurrency prices traded within a narrow range on Wednesday. Most altcoins continued to recover from steep losses in recent sessions, as overall market sentiment remained fragile.
Investor caution intensified ahead of several important U.S. economic releases. The minutes from the Federal Reserve’s January meeting are scheduled for later in the day. In addition, industrial production data and trade figures are due midweek, followed by the Personal Consumption Expenditures (PCE) price index on Friday — the Fed’s preferred inflation measure.
Crypto markets tend to react strongly to shifts in U.S. interest rate expectations, given their speculative profile and sensitivity to liquidity conditions. Earlier this month, U.S. President Donald Trump nominated Kevin Warsh as the next Fed Chair. The nomination triggered notable losses in digital assets, as Warsh is viewed by some as less dovish on monetary policy.
Among major cryptocurrencies, Ethereum rose 1.1% to $2,003.20, while XRP gained 0.2% to $1.4814. BNB, Solana, and Cardano each declined more than 1%.
In the meme coin segment, Dogecoin climbed 1.2%, while the $TRUMP token advanced 4.2%.
