Bitcoin prices faced fresh selling pressure on Wednesday afternoon as traders remained cautious ahead of key US employment data and further signals on the Federal Reserve’s monetary policy. <\/p>\n\n
The world’s largest cryptocurrency was trading 4.8% lower at $88,842 at 7:49 p.m. Spanish time.<\/p>\n\n
\u2018We hate to use the term \u201cCrypto Winter\u201d, but seasons change, and coming out of what was undoubtedly a hot period, it’s not a huge surprise to see a sudden cold front move in,\u2019 Wolfe Research analyst Rob Ginsberg wrote in a note.<\/p>\n\n
The problem is that, with so many support levels broken, they now become resistance to the upside. It is safe to say that the bulls have work to do, and unfortunately, we do not see a quick fix.<\/p>\n\n
Caution persists over Fed rates; employment data in the spotlight<\/strong><\/p>\n\n The pullback reflected growing uncertainty surrounding the Fed’s interest rate outlook. Several monetary policy officials made hawkish comments in recent days, emphasising that inflation progress remained uneven and suggesting that there was limited scope for further easing this year. <\/p>\n\n This change has reduced expectations of a rate cut in the short term, putting pressure on cryptocurrencies.<\/p>\n\n Market participants are now awaiting the long-delayed US September employment report, which will be released on Thursday after last month’s government shutdown postponed its publication.<\/p>\n\n The data could help clarify the strength of the labour market and influence the Fed’s next steps, providing the next important directional signal for Bitcoin.<\/p>\n\n Adding uncertainty to the market, US President Donald Trump said he has decided on his preferred candidate for the next Federal Reserve chair and could announce it soon.<\/p>\n\n Although current chairman Jerome Powell’s term runs until May 2026, speculation about a new candidate has unsettled investors concerned about the central bank’s independence.<\/p>\n\n Kraken valued at $20 billion in its latest funding round<\/strong><\/p>\n\n Cryptocurrency exchange Kraken said on Tuesday that it raised $800 million in a two-tranche funding round that values the company at $20 billion, a 33% increase in less than two months.<\/p>\n\n The main tranche was backed by institutional investors, including Jane Street, HSG, Oppenheimer Alternative Investment Management, and Tribe Capital, while a second investment of $200 million came from Citadel Securities.<\/p>\n\n Kraken said the capital will help accelerate its mission to offer regulated on-chain financial products and expand its multi-asset platform to futures, equities, tokenised assets and payments.<\/p>\n\n