Bitcoin prices edged higher on Wednesday after a steep sell-off in the previous session, though the token remained close to seven-month lows as traders stayed cautious ahead of key U.S. jobs data and more signals on Federal Reserve policy.

The world’s largest cryptocurrency rose 1.4% to 90,953 dollars by 01:25 Eastern Time (06:25 GMT).

Bitcoin briefly dipped below the 90,000-dollar mark on Tuesday — its weakest level since April — before rebounding toward 94,000 dollars. But it failed to hold those gains as risk sentiment remained fragile.

Caution persists around the Fed… and all eyes on U.S. jobs data

The recent pullback reflects growing uncertainty over the Fed’s interest-rate path. Several policymakers have delivered hawkish-leaning comments in recent days, stressing that the inflation trend remains uneven and suggesting that the room for further easing this year is limited.

That shift has dampened expectations for near-term rate cuts, putting pressure on cryptocurrencies.

Investors are now awaiting Thursday’s delayed September nonfarm payrolls report — postponed due to last month’s government shutdown. The data will help clarify the strength of the labor market and guide the Fed’s next steps, potentially delivering Bitcoin’s next major directional catalyst.

Adding to the unease, U.S. President Donald Trump said he has made his decision on the next Federal Reserve chair and may announce it soon.

Although current chair Jerome Powell’s term runs until May 2026, speculation over a potential successor has raised concerns about the central bank’s future independence.

Kraken valued at 20 billion dollars in latest funding round

Crypto exchange Kraken said Tuesday it raised 800 million dollars in a two-tranche funding round that valued the company at 20 billion dollars — a 33% increase in under two months.

Institutional investors including Jane Street, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital participated in the primary tranche, while a second 200-million-dollar tranche came from Citadel Securities.

Kraken said the funds will help accelerate its mission to offer regulated blockchain-based financial products and expand its multi-asset platform into futures, equities, tokenized assets, and payments.

Crypto prices today: muted moves across altcoins amid risk aversion

Most major altcoins traded flat to lower on Wednesday as economic jitters kept investors cautious.

Ethereum — the world’s second-largest cryptocurrency — rose 1% to 3,027.24 dollars.

XRP, the third-largest token, remained nearly unchanged at 2.13 dollars.

Oil prices fell on Wednesday as a buildup in U.S. crude inventories deepened concerns about oversupply, though losses were limited by tightness in global fuel markets following attacks on Russian oil infrastructure.

Brent crude futures dropped 71 cents, or 1%, to 64.18 dollars a barrel by 11:11 GMT, after rising 1.1% in the previous session. U.S. West Texas Intermediate (WTI) crude slipped 63 cents, also 1%, to 60.11 dollars, following a 1.4% gain on Tuesday.

According to market sources citing data from the American Petroleum Institute, U.S. crude inventories rose by 4.45 million barrels in the week ending 14 November. Gasoline stocks increased by 1.55 million barrels, while distillate inventories climbed by 577,000 barrels.

Commodity analysts at ING said the report was “generally bearish,” but noted that “market participants appear more concerned about supply risks than the prospect of future oversupply.”

PVM analyst John Evans said Tuesday’s price gains were driven by a tightening diesel market, caused by reduced Russian exports.

U.S. sanctions on Rosneft and Lukoil include a deadline on 21 November for companies to halt dealings with the two major Russian firms.

The U.S. Treasury said Monday that the sanctions—which are already squeezing Russian oil revenues—are expected to curtail the country’s export volumes. Buyers in China and India have already begun shifting to alternative suppliers.

Those supply concerns have been balanced by analysts’ expectations that current global oil production exceeds demand, which is weighing on prices.

Following recent Ukrainian attacks on Russia’s energy infrastructure and port facilities, European diesel refining margins surged on Tuesday to their highest level since September 2023, amid a broader rise in global refining spreads.

Official U.S. inventory data will be released later on Wednesday. A Reuters poll of eight analysts showed expectations for crude stockpiles to have fallen by an average of 600,000 barrels during the week ending 14 November.

The British pound edged lower on Wednesday after UK inflation data for October came in broadly in line with expectations, reinforcing speculation that the Bank of England may cut interest rates next month, while the U.S. dollar strengthened ahead of Nvidia’s earnings and key American data releases.

At the same time, the Japanese yen touched a ten-month low against the dollar following Bank of Japan Governor Kazuo Ueda’s meeting with key ministers, including Finance Minister Satsuki Katayama, who said the government is monitoring markets “with a high degree of vigilance.”

Official data released Wednesday showed UK annual consumer inflation slowed to 3.6% in October from 3.8% in September, the lowest level in 18 months and matching expectations from the Bank of England and economists surveyed by Reuters.

Expectations of a December rate cut grow stronger

The figures reinforced expectations that the Bank of England could proceed with an interest-rate cut in December.

Sanjay Raja, chief UK economist at Deutsche Bank, said: “With the labor market softening more than expected, GDP growth weaker than the Bank of England’s projections, and core inflation consistently coming in below the Bank’s forecasts, we think Governor Andrew Bailey will feel increasingly confident pushing Bank Rate below 4%.”

Sterling slipped 0.17% to 1.3121 dollars, after briefly touching its lowest level since Friday when UK markets were shaken by speculation surrounding the upcoming 26 November budget.

Elsewhere, investors looked for clearer direction as U.S. agencies worked to clear a backlog of delayed data following the long government shutdown.

The dollar index — which tracks the greenback against six major currencies — rose 0.15% to 99.75.

The yen weakened 0.4% to 156.15 per dollar, its lowest level since January.

The dollar strengthened alongside firm demand for U.S. Treasuries, even as Fed rate-cut expectations eased — a sign analysts say likely reflects safe-haven flows.

Francesco Pesole, FX strategist at ING, said: “We are heading into major U.S. releases, so some caution is natural, even though momentum clearly favors the dollar.” He added: “It’s a mix of safe-haven hedging flows and continued market skepticism about a December Fed rate cut.”

Fed funds futures now price a 47% implied probability of a 25-basis-point cut at the 10 December meeting, up from 42.4% the previous day, according to CME’s FedWatch tool.

President Donald Trump renewed his criticism of Fed Chair Jerome Powell on Tuesday, saying: “I’d love to fire the guy who’s there now… but someone is stopping me.” Powell’s term ends in May.

A pivotal moment

Currency traders also kept an eye on corporate earnings, with Nvidia (NVDA.O) set to report third-quarter results later in the day.

Global markets have been under heavy pressure this week, with the S&P 500 recording four straight days of losses amid concern over stretched valuations in AI-linked stocks.

“We have Nvidia earnings today, and it could be a pivotal moment for equities,” said ING’s Pesole. “It’s unusual for a single earnings release to move FX markets, but if the results are extremely strong or extremely weak, the spillover could be significant.”

U.S. jobless claims spike

Adding to market anxiety, Tuesday’s data showed a sharp rise in the number of Americans receiving unemployment benefits between mid-September and mid-October.

Another key test arrives on Thursday with the delayed September nonfarm payrolls report, postponed due to the government shutdown.

As risk appetite weakened further, the Australian dollar fell 0.4% to 0.6485 U.S. dollars, while the New Zealand dollar dropped 0.5% to 0.56300 dollars.

The UK’s annual headline consumer price index rose 3.6% in October, slightly above market expectations of 3.5% and down from the previous reading of 3.8%.

Core CPI increased 3.4% year-on-year, in line with expectations and below the prior reading of 3.5%.

The data indicate easing underlying inflation pressures for Bank of England policymakers and strengthen the case for a potential interest-rate cut in December.