Bitcoin faced renewed selling pressure on Wednesday afternoon as traders stayed cautious ahead of key U.S. jobs data and more signals on Federal Reserve policy.
The world’s largest cryptocurrency was last down 4.8%, trading at $88,842 by 13:49 ET (18:49 GMT).
Wolfe Research analyst Rob Ginsberg said the market is entering a colder phase after a strong rally. He noted that several support levels have been lost, turning them into new resistance. According to Ginsberg, Bitcoin bulls now face a difficult path forward, and he does not expect a quick recovery.
Fed Concerns Continue as Jobs Data Approaches
The latest pullback reflects rising uncertainty over the Fed’s interest-rate outlook. Several policymakers issued hawkish comments in recent days. They warned that inflation progress remains uneven and signaled there may be limited room for more easing this year.
This shift has reduced expectations for near-term rate cuts, putting pressure on cryptocurrencies.
Markets are now focused on the delayed U.S. September jobs report, which will be released on Thursday. The government shutdown last month postponed the data. The report may help clarify the strength of the labor market and influence the Fed’s next policy steps, making it a key driver for Bitcoin’s next move.
Adding to the uncertainty, U.S. President Donald Trump said he has chosen his preferred candidate for the next Federal Reserve chair and may announce the decision soon. Although Jerome Powell’s term runs until May 2026, speculation about his replacement has unsettled investors worried about central bank independence.
Kraken Valued at $20 Billion After New Funding
Crypto exchange Kraken announced on Tuesday that it raised $800 million in a dual-tranche funding round. The deal values the company at $20 billion, a 33% increase in less than two months.
Institutional investors, including Jane Street, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, backed the main tranche. Citadel Securities contributed an additional $200 million. Kraken said the funding will help expand its regulated on-chain products and grow its multi-asset platform into futures, equities, tokenized assets, and payments.
BlackRock’s Bitcoin ETF Sees Record Outflow
BlackRock’s iShares Bitcoin Trust saw an estimated $523 million in outflows on Tuesday, the largest single-day withdrawal since its launch, according to Farside Investors. The outflow followed Bitcoin’s drop below $90,000, extending its fall to a seven-month low.
The ETF, which quickly became the leading spot Bitcoin fund after debuting in early 2024, had benefited from strong mainstream adoption. It now manages over $73 billion in assets but is down 19% this quarter.
Crypto Market Today: Altcoins Stay Quiet
Altcoins were mostly subdued on Wednesday as risk sentiment weakened.
Ethereum rose 1% to $3,083.59.
XRP slipped 1.7% to $2.13.
Solana and Cardano were little changed.
Polygon gained around 1%.
Among meme tokens, both Dogecoin and $TRUMP posted slight increases.
