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Bitcoin declines below $112,000 before crucial US data
AI Summary
- Bitcoin fell below $112,000 after a brief recovery, with investors cautious ahead of key US economic data
- Fed officials signal cautious approach to future rate cuts, impacting broader digital asset sentiment
- Traders are awaiting US jobs and inflation data for clearer direction in financial markets
Bitcoin fell below $112,000 on Thursday after a brief recovery, with investors remaining cautious ahead of key US economic data, following signals from Federal Reserve officials that they would take a cautious approach to future rate cuts.
The world’s largest cryptocurrency slipped 0.7% to $111,786.6 by 02:28 AM ET (06:28 GMT).
Bitcoin had seen a limited rebound on Wednesday, approaching $114,000, but failed to sustain momentum.
The digital asset dropped sharply earlier this week when a wave of liquidations wiped out about $1.5 billion in long positions across crypto exchanges.
Reports said weak market liquidity, combined with leveraged bets, deepened the sell-off that pushed Bitcoin from above $115,000 to the $112,000 range. This weighed on broader digital asset sentiment and left traders wary of further volatility.
Traders Await US Jobs and Inflation Data
Fed Chair Jerome Powell said earlier this week that there is “no risk-free path” in setting monetary policy, warning that easing too quickly could fuel inflation, while moving too slowly could hurt job growth.
Other Fed officials reinforced this cautious stance in separate remarks, stressing that any further steps toward monetary easing will depend heavily on incoming economic data.
These comments curbed risk appetite across financial markets, with investors now awaiting fresh US data for clearer direction.
Weekly jobless claims and a final reading on second-quarter GDP are due Thursday. On Friday, the August Personal Consumption Expenditures (PCE) price index report — the Fed’s preferred inflation gauge — is expected to show core inflation steady at about 2.9% year-over-year, above the Fed’s 2% target.
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