Bitcoin (COIN:BTCUSD) moved lower in Wednesday’s Asian session, falling back beneath the $67,000 level as traders positioned cautiously before the release of U.S. employment data that could influence expectations for Federal Reserve policy.
The world’s largest cryptocurrency by market capitalization was down 2.6% at $67,126.7 as of 02:46 ET (07:46 GMT).
Although Bitcoin recently rebounded from last week’s slide toward $60,000, it has struggled to hold gains above the $70,000 mark, highlighting ongoing volatility and hesitant investor sentiment across the digital asset space.
Payrolls report takes center stage
Markets are awaiting the January U.S. nonfarm payrolls report, which was delayed due to a brief government shutdown last week.
Economists project that approximately 70,000 jobs were added in January, with the unemployment rate expected to remain steady at around 4.4%.
Investors are also preparing for Friday’s Consumer Price Index (CPI) release, which may offer additional clues about inflation trends and the likely timing of any future Fed rate adjustments.
Data from the CME FedWatch tool suggest that traders broadly expect the Federal Reserve to keep interest rates unchanged until June, following three consecutive cuts late last year.
Ordinarily, expectations of lower interest rates tend to support risk-oriented assets such as cryptocurrencies, since declining yields reduce the appeal of holding cash and fixed-income instruments. However, this time Bitcoin has failed to mount a sustained rally despite easing policy, with analysts pointing to tighter liquidity conditions, diminished institutional flows, and cooling speculative demand as key headwinds.
Robinhood pressured by crypto slowdown
Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) fell sharply in extended trading after the brokerage reported quarterly results that missed Wall Street forecasts, largely due to weaker cryptocurrency trading activity.
The company posted fourth-quarter revenue of roughly $1.28 billion, below analysts’ expectations of $1.40 billion. A steep drop in crypto-related revenue offset strength in stock and options trading.
Robinhood’s stock declined more than 8% in after-hours dealings.
Altcoins extend losses; XRP down 4%
Losses were not limited to Bitcoin. Major alternative cryptocurrencies also trended lower amid the cautious tone.
Ethereum, the second-largest token, fell 2.7% to $1,952.92.
XRP, the third-largest cryptocurrency by market value, dropped 4% to $1.36.
Solana and Polygon each lost 4.1%, while Cardano slipped 2.5%. Meme token Dogecoin retreated by 3%.
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