Bitcoin (COIN:BTCUSD) fell under the $70,000 threshold during Asian trading on Tuesday, struggling once again to extend its recent rebound from lows near $60,000 as traders turned more defensive ahead of upcoming U.S. employment and inflation reports.
The largest cryptocurrency by market value was down 2.2% at $69,392.7 as of 05:58 GMT.
Bitcoin trapped in a narrow range
In recent days, Bitcoin has largely oscillated between $68,000 and $72,000, following a volatile period last week when prices sank to roughly $60,000—levels not seen since October 2024—before a relief rally pushed the token back above $70,000.
That sell-off was exacerbated by liquidation-driven pressure, with leveraged positions being unwound rapidly during sharp market declines.
Attention has now shifted to U.S. macroeconomic releases that could reset expectations around Federal Reserve policy. Monthly U.S. jobs data, postponed due to a brief government shutdown, is scheduled for release on Wednesday.
Later in the week, Friday’s U.S. Consumer Price Index (CPI) figures will offer fresh insight into inflation trends and could influence market expectations around interest-rate cuts.
Investors are also watching developments at the Federal Reserve closely after President Donald Trump nominated Kevin Warsh as the next Fed chair. Traders are assessing how a potentially more hawkish leadership approach could affect liquidity conditions and risk-sensitive assets, including Bitcoin.
South Korean exchange mishap raises regulatory alarms
Separately, South Korean cryptocurrency exchange Bithumb mistakenly distributed approximately $44 billion worth of bitcoin to users during a promotional campaign, reigniting calls for tighter oversight of digital asset platforms.
The incident occurred on Friday when the exchange accidentally credited accounts with 620,000 bitcoins instead of modest cash rewards. The error triggered a brief bout of selling before it was identified, and 99.7% of the misplaced coins were ultimately recovered.
Lee Chan-jin, governor of the Financial Supervisory Service, said the episode exposed structural vulnerabilities in virtual asset systems and underscored the need for stronger supervisory frameworks and updated legislation to bring cryptocurrencies under firmer regulatory control.
Altcoins also weaken
Most major alternative cryptocurrencies also traded lower.
Ethereum slid 2% to $2,052.92, while XRP fell 1% to $1.43.
Solana declined 1.6%, and both Cardano and Polygon dropped 2.5%. Among meme-themed tokens, Dogecoin lost 1.8%.
Leave a Reply