Bitcoin continued to fall and hit a two-week low as investors weighed risks ahead of a Federal Reserve symposium and potential talks between Russia and Ukraine.
Bitcoin extended its slide to hit a two-week low on Wednesday as investors trimmed positions ahead of the Federal Reserve's Jackson Hole symposium and weighed geopolitical risks over potential talks between Russia and Ukraine.
The world's largest cryptocurrency was trading 1.15% lower at $113,666 as of 09:40 GMT. Bitcoin is still short of a six-week low, having dipped as low as $112,668 earlier in the session.
The token surged to a record high above $124,000 last week, but pulled back sharply after U.S. data eased bets on an excessive Fed rate cut next month.
Investors eye Jackson Hole meeting, potential Russia-Ukraine talks
Markets are gearing up for the Federal Reserve’s annual Jackson Hole symposium, where Fed Chairman Jerome Powell will speak on Friday.
A decidedly hawkish tone at Jackson Hole, or advice that casts doubt on bets on a September rate cut, could put further pressure on risk assets like Bitcoin.
Traders have tempered expectations for a bigger rate cut in September, with futures now pricing in a 25 basis point cut.
Geopolitics has been another hurdle. On Monday, U.S. President Donald Trump hosted Ukrainian President Volodymyr Zelensky and European leaders to discuss future peace efforts.
He said he would hold direct talks with both Moscow and Kiev, and hinted at the possibility of a trilateral summit.
Bowman Backs Central Bankers Holding Small Stake in Cryptocurrency
Federal Reserve Vice Chair for Supervision Michelle Bowman said Tuesday that central bankers should be allowed to hold small stakes in cryptocurrencies and digital assets.
She said the change would allow regulators to gain hands-on experience and strengthen their capacity to oversee emerging financial technologies.
Bowman stressed that while there are risks, they should be weighed against the potential benefits and not dismissed out of caution.
Her comments reflect a more proactive stance by the regulator toward cryptocurrencies under the current administration.
Cryptocurrency Price Today: Altcoins Fall, Cardano Falls 8%
Most altcoins also extended their losses on Wednesday, tracking Bitcoin.
The world’s No. 2 cryptocurrency, Ethereum, fell 1.7% to $4,162.54. XRP fell 4.1% to $2.89, Cardano fell 8%, and Polygon fell 6%. Among meme tokens, Dogecoin lost 2%, while $TRUMP retreated 2.8%.