Bitcoin Extends Losses as U.S. Data, Fed Minutes Keep Risk Appetite Muted

Bitcoin slipped further on Wednesday, extending recent losses as investors remained cautious ahead of key U.S. economic data and comments from the Federal Reserve, dampening appetite for speculative assets such as cryptocurrencies.

The world’s largest cryptocurrency fell nearly 1% to $67,746.6 by 01:19 ET (06:19 GMT), offering little reaction to fresh buying activity from its biggest corporate holder. Sentiment toward Bitcoin has remained fragile after the token lost nearly half of its value from a record high reached in October, keeping dip-buyers largely on the sidelines.

Strategy Adds to Bitcoin Holdings, But Concerns Persist

Strategy Inc. (NASDAQ: MSTR) disclosed on Tuesday that it purchased an additional 2,486 Bitcoin for $168.4 million over the past week, bringing its total holdings to 717,131 coins. The latest acquisition was made at an average price of $67,710 per Bitcoin, slightly below current market levels.

The purchase marked Strategy’s third Bitcoin acquisition in February and was financed through further stock issuance. Earlier this week, the company said it could withstand a Bitcoin price collapse to as low as $8,000 and still meet its debt obligations.

However, those comments—made amid a prolonged downturn in Bitcoin prices—sparked criticism from some investors, who raised concerns about equity dilution as the firm continues to issue new shares to fund additional purchases. Strategy has increasingly become a focal point for broader market anxiety, with fears that a sustained Bitcoin slump could eventually force the company to sell part of its sizeable holdings to service debt.

Altcoins Trade Cautiously Ahead of U.S. Data

Broader cryptocurrency markets moved within a narrow range on Wednesday, with most altcoins still nursing sharp losses from recent sessions as sentiment toward the sector remained subdued.

Investor caution intensified ahead of several major U.S. economic releases, including the minutes of the Federal Reserve’s January meeting, due later in the day. Industrial production data is scheduled for Wednesday, followed by trade figures on Thursday and the Personal Consumption Expenditures (PCE) price index—the Fed’s preferred inflation gauge—on Friday. Together, these releases are expected to provide fresh insight into the outlook for U.S. interest rates.

Cryptocurrencies are particularly sensitive to shifts in rate expectations, given their reliance on looser monetary conditions. Earlier this month, the sector was hit hard after U.S. President Donald Trump nominated Kevin Warsh as the next Fed Chair, as Warsh was widely viewed as less dovish.

Among major tokens, Ether rose 1.1% to $2,003.20, while XRP edged up 0.2% to $1.4814. In contrast, BNB, Solana, and Cardano each fell more than 1%.

In the meme-coin space, Dogecoin gained 1.2%, while the $TRUMP token jumped 4.2%, bucking the broader cautious tone in crypto markets.