Bitcoin edged higher on Wednesday, recovering part of the sharp losses from the previous session and stabilising near a seven‑month low, as crypto traders positioned cautiously ahead of key US labour data and further signals from the Federal Reserve on interest‑rate policy.
In early trading, the world’s largest cryptocurrency was up around 1.4%, changing hands near 90,953 dollars after briefly slipping below the psychologically important 90,000‑dollar mark on Tuesday, its weakest level since April. The token managed an intraday rebound toward 94,000 dollars but failed to hold those gains as broader risk sentiment remained fragile.
Fed Uncertainty Keeps Risk Appetite in Check
The latest pullback in digital assets mirrors growing uncertainty over the Fed’s rate trajectory. Several Fed officials have delivered hawkish‑leaning comments in recent days, stressing that progress on inflation remains uneven and suggesting there is limited scope for additional policy easing this year.
That shift has tempered expectations for imminent rate cuts and weighed on risk‑sensitive corners of the market, including cryptocurrencies. Higher‑for‑longer yields tend to reduce the appeal of non‑yielding assets such as Bitcoin, particularly for macro‑driven investors who actively rotate between equities, bonds and digital assets.
Attention is now firmly on the delayed US employment report for September, due on Thursday following last month’s government shutdown. The data should offer a clearer read on the resilience of the labour market and could help shape the Fed’s next steps. A stronger‑than‑expected print would likely reinforce the case for policy caution, while a softer report could revive bets on earlier easing — and, by extension, support a risk‑on bid in crypto.
Adding to the policy noise, US President Donald Trump has indicated he has chosen his preferred candidate for the next Fed chair and could make an announcement soon. While Jerome Powell’s current term runs until May 2026, the prospect of a new nominee has unsettled some investors concerned about the central bank’s independence and the potential implications for monetary policy over the medium term.
Kraken Secures 800 Million Dollars, Lifts Valuation to 20 Billion
Amid the macro headwinds, corporate activity in the digital‑asset sector remains robust. Crypto exchange Kraken said on Tuesday it had raised 800 million dollars in a two‑tranche funding round that values the company at 20 billion dollars, an increase of roughly 33% in less than two months.
The main tranche was backed by a roster of institutional investors including Jane Street, HSG, Oppenheimer Alternative Investment Management and Tribe Capital. A second 200‑million‑dollar ticket came from Citadel Securities, underscoring the continued interest of traditional market‑making heavyweights in the digital‑asset ecosystem.
Kraken plans to deploy the fresh capital to accelerate its strategy of delivering regulated on‑chain financial products and to broaden its multi‑asset platform. The group aims to expand beyond spot crypto trading into futures, equities, tokenised assets and payments, further blurring the line between conventional finance and digital markets and positioning itself as a full‑stack infrastructure provider for the next wave of crypto adoption.
Altcoins Trade in Tight Ranges Amid Macro Jitters
The caution in Bitcoin has been echoed across the altcoin complex. Most major alternative tokens traded in relatively narrow ranges on Wednesday as investors remained wary of taking outsized directional bets ahead of the US data and potential policy headlines.
Ethereum, the second‑largest cryptocurrency by market value, inched about 1% higher to 3,027.24 dollars, tracking Bitcoin’s modest recovery while still constrained by the broader risk‑off tone.
XRP, the third‑largest crypto asset, was largely flat around 2.13 dollars, suggesting limited conviction among traders despite recent bouts of elevated volatility in the token.
Elsewhere in the large‑cap universe, Solana added roughly 1.5%, while Polygon advanced around 0.8%. Cardano was little changed, reflecting the subdued trading conditions and a lack of idiosyncratic catalysts across much of the altcoin space.
In the more speculative corner of the market, meme tokens maintained a slightly positive bias. Dogecoin and the politically themed token TRUMP both posted modest gains, highlighting that pockets of retail‑driven risk appetite persist even as macro forces dominate the broader narrative.
A Market Waiting for Direction
The current backdrop leaves digital‑asset markets in a holding pattern. On one side, elevated rates, Fed uncertainty and lingering concerns about global growth continue to compress liquidity and dampen enthusiasm for high‑beta assets. On the other, ongoing institutional capital flows — exemplified by Kraken’s latest funding round — and continued product innovation across exchanges, derivatives and tokenised markets are quietly reinforcing the structural case for crypto.
For now, Bitcoin’s ability to defend the 90,000‑dollar area and respond to upcoming macro data will be closely watched. A decisive break lower could embolden bears and trigger further de‑risking across altcoins, while a constructive labour‑market print or clearer dovish signals from the Fed might provide the catalyst for a more durable rebound.
Against this backdrop, sophisticated crypto market participants are likely to stay tactically cautious but strategically engaged, using pockets of volatility around data releases and policy headlines to recalibrate positioning rather than abandoning the asset class altogether.
Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Investors should always conduct their own thorough research and consult with a qualified financial advisor before making any investment decisions in cryptocurrencies, which are highly volatile and speculative assets.
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