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Investing.com-- Bitcoin remained on the back foot on Wednesday after steep losses in the previous session, hovering near seven-month lows, as traders remained cautious ahead of key U.S. jobs data and further signals on Federal Reserve policy.
The world’s largest cryptocurrency last traded 1.2% lower at $92,121.0 by 01:25 ET (06:25 GMT).
It briefly plunged below $90,000 on Tuesday, touching its weakest level since April. Bitcoin rebounded slightly toward $94,000 but was unable to hold gains as broader risk sentiment stayed fragile.
Fed rate caution persists; jobs data eyed
The pullback reflected mounting uncertainty around the Fed’s interest-rate outlook. Several policymakers delivered hawkish remarks in recent days, emphasising that inflation progress remained uneven and suggesting there was limited room for further easing this year.
The shift has dampened expectations for a near-term rate cut, pressuring cryptocurrencies.
Market participants are now awaiting the long-delayed U.S. September jobs report, due on Thursday after last month’s government shutdown pushed back its release.
The data could help clarify the strength of the labour market and influence the Fed’s next steps, providing the next major directional cue for Bitcoin.
Adding to market uncertainty, U.S. President Donald Trump said he has decided on his preferred choice for the next Federal Reserve chair and may announce it soon.
While current chair Jerome Powell’s term runs through May 2026, speculation about a new nominee has unsettled investors concerned about central bank independence.
Kraken valued at $20 bln in latest funding
Crypto exchange Kraken said on Tuesday it raised $800 million in a dual-tranche funding round that values the company at $20 billion, up 33% in under two months.
The primary tranche was backed by institutional investors, including Jane Street, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, while a second $200 million investment came from Citadel Securities.
Kraken said the capital will help accelerate its mission to offer regulated financial products on-chain and expand its multi-asset platform into futures, equities, tokenized assets, and payments.
BlackRock’s Bitcoin ETF sees record one-day outflow
Investors pulled an estimated $523 million from BlackRock’s iShares Bitcoin Trust on Tuesday, the largest daily outflow since the ETF debuted, according to Farside Investors. The move came as Bitcoin slipped below $90,000, extending a decline that has taken the cryptocurrency to its weakest level in seven months.
The fund, which became the dominant spot bitcoin ETF after launching in early 2024, had been a major beneficiary of the surge in mainstream crypto demand.
It now manages more than $73 billion in assets but has dropped 19% so far this quarter.
Crypto price today: altcoins subdued amid risk-off mood
Most altcoins were also subdued on Wednesday, rangebound amid macro worries.
World no.2 crypto Ethereum rose 1% to $3,083.59.
World no. 3 crypto XRP slipped 1.7% to $2.13.
Solana and Cardano were little changed, while Polygon added about 1%.
Among meme tokens, both Dogecoin and $TRUMP rose slightly.
(Ayushman Ojha contributed to this report.)