Bitcoin price today: falls to $111.4k ahead of key inflation data; ETH below $4K

Investing.com-- Bitcoin dipped below $112,000 on Thursday after a brief rebound, as investors remained cautious ahead of key U.S. economic releases after Federal Reserve officials signalled a careful approach to future interest rate cuts.

The world’s largest cryptocurrency last traded 1.4% lower at $111,410 as of 09:41 ET (13:41 GMT).

Bitcoin had staged a modest recovery on Wednesday, reaching near $114,000, but failed to sustain momentum.

The token fell sharply at the start of the week, when a wave of liquidations wiped out about $1.5 billion in long positions across crypto exchanges.

Reports said thin market liquidity and heavy leveraged bets deepened the sell-off, which dragged Bitcoin from above $115,000 to the low $112,000 area. 

The move unsettled sentiment across the digital asset space, leaving traders wary of further volatility.

U.S. economy stronger in Q2, jobless claims fall but labor market softens

The U.S. economy expanded faster than first estimated in the second quarter, though more recent data point to cooling momentum.

Revised figures from the Commerce Department showed GDP rising at a 3.8% annualized pace, above the initial 3.3% reading. Economists polled by Reuters had anticipated GDP growth would be unchanged at a 3.3% rate.

The upgrade reflected weaker imports, firmer consumer spending, and stronger business investment in intellectual property, much of it tied to artificial intelligence.

Still, economists warn the swings in imports exaggerated recent strength, with growth expected to slow to about 1.5% for the full year as trade-policy uncertainty weighs on activity.

From the income side, gross domestic income (GDI) advanced at a 3.8% rate, down from an earlier 4.8% estimate but stronger than the first quarter’s revised 1.0%. Averaging GDP and GDI, output rose 3.8%, slightly below last month’s 4.0% estimate.

Labor market figures released the same day offered further signs of cooling. Initial claims for state unemployment benefits fell by 14,000 to a seasonally adjusted 218,000 for the week ended September 20, below economists’ forecasts of 235,000.

While layoffs remain low, hiring has slowed to an anemic pace.

The number of people continuing to receive benefits, seen as a gauge of hiring, edged down by 2,000 to 1.926 million on a seasonally adjusted basis in the week ending September 13, the report said.

Traders await PCE inflation print

Federal Reserve Chair Jerome Powell said earlier this week there was “no risk-free path” in setting policy, warning that easing too quickly could stoke inflation while moving too slowly risked harming jobs growth. 

Other Fed officials reinforced the cautious stance in separate remarks, underlining that further monetary easing will be highly data dependent.

The comments curbed risk appetite across financial markets, with investors now awaiting fresh U.S. data for a clearer direction. 

The August personal consumption expenditures (PCE) price index report is due on Friday and is forecast to show core inflation running near 2.9% year-on-year, a level still above the Fed’s 2% target.

9 European lenders to launch euro stablecoin

Nine European banks, including ING and UniCredit, said Thursday they are joining forces to set up a company that will issue a euro-denominated stablecoin, aiming to curb U.S. dominance in digital markets.

Stablecoins, which are pegged to traditional currencies, have become widely used for crypto trading, digital payments, and cross-border transfers.

"The initiative will provide a real European alternative to the U.S.-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments," the banks said.

The Amsterdam-based venture plans to roll out the new stablecoin in the second half of next year.

Alongside ING and UniCredit, the consortium includes Banca Sella, KBC, DekaBank, Danske Bank, SEB, Caixabank and Raiffeisen Bank International.

More participants could join, and the group expects to appoint a chief executive soon.

Crypto price today: altcoins fall; Ether drops below $4K

Most altcoins extended losses on Thursday amid a broader risk-off mood.

World no.2 crypto Ethereum declined 5.2% to $3,962.01, its lowest level in nearly seven weeks.

World no. 3 crypto XRP dipped 1.6% to $2.83.

Solana fell 6%, while Cardano lost 4.1%, and Polygon declined 3.8%.

Among meme tokens, Dogecoin slid 5.5%, while $TRUMP retreated 2.5%.

(Ayushman Ojha contributed to this report.)