Bitcoin (COIN:BTCUSD) retreated in Asian trading on Wednesday, slipping back under the $67,000 mark as investors positioned ahead of a key U.S. employment report that could offer fresh signals on the Federal Reserve’s interest rate outlook.
The largest cryptocurrency by market value was down 2.6% at $67,126.7 as of 02:46 ET (07:46 GMT).
The token had bounced from last week’s dip near $60,000 but failed to maintain momentum above $70,000, underscoring continued volatility and cautious sentiment across digital asset markets.
U.S. jobs report in focus
Attention is centered on the January U.S. payrolls report, delayed from last week due to a temporary government shutdown and now scheduled for release later Wednesday.
Economists expect the data to show moderate job creation, with nonfarm payrolls projected to increase by roughly 70,000 and the unemployment rate holding around 4.4%.
Investors are also looking ahead to Friday’s U.S. Consumer Price Index (CPI) figures, which may provide additional insight into inflation trends and the potential trajectory of Fed policy.
According to the CME FedWatch tool, traders largely anticipate that the Federal Reserve will keep rates unchanged until June, following three successive rate cuts in late 2025.
Typically, expectations of looser monetary policy and lower interest rates tend to support risk-sensitive assets like Bitcoin by lowering the opportunity cost of holding non-yielding investments.
This cycle, however, has diverged from that pattern. Despite recent rate reductions, Bitcoin has remained under pressure. Analysts attribute the muted response to tighter liquidity conditions, softer institutional participation, and waning speculative appetite.
Robinhood falls on weak crypto revenue
Shares of Robinhood Markets, Inc. (NASDAQ:HOOD) dropped sharply in extended trading Tuesday after the online brokerage posted quarterly results that missed expectations, dragged down by weaker cryptocurrency-related revenue.
The fintech firm reported fourth-quarter revenue of approximately $1.28 billion, below the $1.40 billion analysts had forecast. A notable decline in crypto trading revenue offset stronger performance in equities and options activity.
Robinhood shares fell more than 8% after the results.
Altcoins under pressure; XRP down 4%
Other major cryptocurrencies also moved lower on Wednesday as cautious trading persisted.
Ethereum, the second-largest digital asset, declined 2.7% to $1,952.92.
XRP, ranked third by market capitalization, dropped 4% to $1.36.
Solana and Polygon each fell 4.1%, while Cardano shed 2.5%. Among meme-themed tokens, Dogecoin slipped 3%.