Bitcoin slipped lower on Wednesday, extending this week’s bearish momentum. The decline followed a major wave of liquidations earlier in the week, while investors also digested cautious remarks from Federal Reserve Chair Jerome Powell and awaited key U.S. inflation data.
The world’s largest cryptocurrency last traded 0.2% lower at $112,790.5 as of 02:11 ET (06:11 GMT), hovering near a two-week low.
Bitcoin pressured after liquidation wave
On Monday, Bitcoin tumbled nearly 3% as about $1.5 billion worth of crypto positions were liquidated in a single day. It marked the largest wipeout since March and triggered forced selling across derivatives markets. The losses spilled over into Ethereum and other major altcoins.
Reports indicated that the sell-off was fueled by traders using options contracts that benefit from sharp price swings.
The slump came shortly after Bitcoin had rallied on the Fed’s recent quarter-point rate cut. That optimism faded quickly as markets reassessed the Fed’s cautious stance on further easing.
Powell signals caution
In his speech, Powell said the central bank must act carefully when considering more rate cuts. He noted that a softer labor market could allow additional easing but warned that cutting too aggressively risks reversing progress on inflation.
Markets now await Friday’s U.S. personal consumption expenditures (PCE) index— the Fed’s preferred inflation gauge— for further direction.
Tether eyes record valuation
Separately, Bloomberg reported that Tether, the company behind the USDT stablecoin, is exploring a $15–20 billion private placement. The deal could value the firm at around $500 billion and involve selling a roughly 3% stake. CEO Paolo Ardoino confirmed on Wednesday that the company is reviewing a potential capital raise with high-profile investors.
Altcoins stay weak; Solana leads losses
Most altcoins traded rangebound after steep declines earlier in the week. Ethereum slipped 0.7% to $4,174.06, marking its lowest level in over a month. XRP dropped 0.5% to $2.85.
Solana fell 4.5%, Cardano slid 1.7%, and Polygon lost 1%. Among meme coins, Dogecoin declined 1.5%, while $TRUMP token traded flat.
