Bitcoin fell on Wednesday, extending recent declines as caution before key U.S. economic data and Federal Reserve comments left investors largely averse towards speculative assets such as cryptocurrencies.
The world’s largest crypto took little support from top corporate holder Strategy Inc (NASDAQ:MSTR) disclosing more coin purchases, while dip-buyers also remained largely cautious after Bitcoin crashed nearly 50% from an October record high.
Bitcoin fell nearly 1% to $67,746.6 by 01:19 ET (06:19 GMT).
Get more insights on crypto prices by subscribing to InvestingPro
Strategy buys $168 mln of Bitcoin Strategy said on Tuesday it purchased 2,486 Bitcoin for $168.4 million in the past week, bringing its total stockpile of the crypto to 717,131 coins. Last week’s buy was at an average Bitcoin cost of $67,710 per coin, slightly below current price levels.
The acquisition was Strategy’s third Bitcoin buy in February, with the company funding its latest acquisition through more stock issuances.
Strategy said earlier this week that it could survive a Bitcoin price crash to as low as $8,000, and that it remained capable of meeting its debt obligations.
But the comments– which came following a prolonged downturn in Bitcoin prices– sparked some criticism over a dilution in the company’s equity, especially if it keeps issuing new shares to fund more Bitcoin purchases.
The company has become a key point of concern for Bitcoin investors, amid fears that a sustained downturn in Bitcoin could force the company to sell part of its massive stockpile to meet its debt obligations.
Crypto price today: altcoins dither with US data, Fed minutes on tap Broader crypto prices moved in a tight range on Wednesday, with most altcoins nursing steep losses in recent sessions as sentiment towards the sector remained weak.
Market caution also grew in anticipation of a swathe of key U.S. economic cues, with the minutes of the Fed’s January meeting due later in the day.
Industrial production and trade data are due on Wednesday and Thursday, respectively, while PCE price index data– the Fed’s preferred inflation gauge– is due on Friday. The latter, along the Fed minutes, will be closely parsed for any more cues on interest rates.
Crypto markets are sensitive to expectations for U.S. interest rates, given their speculative nature and reliance on looser monetary conditions. U.S. President Donald Trump’s nomination of Kevin Warsh as the next Fed Chair had sparked deep losses in the sector in early-February, given that Warsh was viewed as a less dovish pick.
On Wednesday, world no.2 crypto Ether rose 1.1% to $2,003.20, while XRP rose 0.2% to $1.4814.
BNB, Solana, and Cardano fell more than 1% each.
Among meme coins, Dogecoin rose 1.2%, while $TRUMP added 4.2%.
