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Investing.com-- Bitcoin retreated to hit a two-week low on Wednesday, as investors reduced positions ahead of the Federal Reserve’s Jackson Hole symposium, and assessed geopolitical risks with potential Russia-Ukraine talks ahead.
The world’s largest cryptocurrency last traded 1.1% lower at $112,870.0 as of 10:15 ET (14:15 GMT).
It was just shy of reaching a six-week trough as it declined to as low as $112,668 earlier in the session.
The token had climbed to a record above $124,000 last week but pulled back sharply after hot U.S. data tempered bets for an outsized Fed rate cut next month.
Investors eye Jackson Hole meet, potential Russia-Ukraine talks
Markets are bracing for the Federal Reserve’s annual symposium in Jackson Hole, where Chair Jerome Powell will speak on Friday.
A decisively hawkish tone from Jackson Hole, or guidance that challenges bets on a September rate cut, could further pressure risk assets such as Bitcoin.
Traders have softened expectations for a larger cut in September, with futures now pricing in a 25-basis-point reduction.
Geopolitics added another headwind. U.S. President Donald Trump hosted Ukrainian President Volodymyr Zelenskiy and European leaders on Monday to discuss future peace efforts.
He said he was arranging direct talks with both Moscow and Kyiv and hinted at a possible trilateral summit.
While any credible pathway to negotiations is broadly supportive of global risk sentiment over the long term, the near-term uncertainty weighed on cryptocurrencies.
Fed’s Bowman backs central bank staff owning small crypto stakes
Federal Reserve Vice Chair for Supervision Michelle Bowman said on Tuesday that central bank staff should be allowed to own small, “de minimis” amounts of cryptocurrencies and digital assets.
She argued the change would give regulators hands-on experience and improve their capacity to oversee emerging financial technologies.
Bowman emphasized that while risks are inherent, they should be balanced against potential benefits and not dismissed out of caution.
Her remarks reflect a more engaged regulatory posture toward crypto under the current administration.
Beijing mulls yuan-backed stablecoins for global push
China is weighing a policy shift that would allow yuan-backed stablecoins, a move aimed at promoting wider use of its currency globally, Reuters reported on Wednesday, citing people familiar with the discussions.
The State Council, the country’s cabinet, is expected to review a roadmap later this month that sets targets for international yuan usage, assigns regulatory responsibilities, and outlines measures for risk control.
Senior leaders are also scheduled to hold a study session on yuan internationalisation and the role of stablecoins, where they are likely to set policy direction and boundaries for their application.
Beijing sees stablecoins as a potential tool to advance the yuan’s global reach, particularly as U.S. dollar-linked tokens gain traction in international finance, the report said.
Crypto price today: altcoins drop; Cardano tumbles 8%
Most altcoins also extended losses on Wednesday, tracking Bitcoin moves.
World no.2 crypto Ether fell nearly 4% to $4,120.40
World no. 3 crypto XRP dropped 5.5% to $2.82.
Solana lost 2.2%, while Cardano slumped over 8%, and Polygon slipped 6.3%.
Among meme tokens, Dogecoin dipped 4.5%, while $TRUMP retreated 3%.
(Ayushman Ojha contributed to this article.)