Bitcoin extended its losses on Wednesday, falling to its lowest level in two weeks as investors trimmed positions ahead of the Federal Reserve’s annual Jackson Hole Symposium, amid growing geopolitical concerns tied to potential negotiations between Russia and Ukraine.
The world’s largest cryptocurrency dropped 1.1% to $113,728.5, after touching $112,668 earlier in the session, nearing its weakest level in six weeks.
Bitcoin had recently set a new record above $124,000 last week but slid sharply after stronger than expected U.S. economic data reduced market expectations for a significant interest rate cut by the Fed next month.
Against this backdrop, investors are closely awaiting remarks from Fed Chair Jerome Powell at the upcoming Jackson Hole gathering, where a hawkish tone or comments downplaying the likelihood of a September rate cut could add further pressure on risk assets, including cryptocurrencies.
Geopolitical tensions added another layer of strain, as U.S. President Donald Trump hosted Ukrainian President Volodymyr Zelenskiy and several European leaders to discuss prospects for peace efforts, signaling the possibility of direct talks with Moscow and Kyiv, and even a potential trilateral summit.
While any credible negotiation path is viewed positively for market sentiment in the long run, the immediate uncertainty has weighed negatively on digital asset trading.
Meanwhile, Fed Vice Chair for Supervision Michelle Bowman stated that it would be appropriate to allow central bank staff to hold small amounts of cryptocurrencies, arguing that such exposure could provide practical experience to support regulatory oversight. She stressed that risks should be carefully weighed against potential benefits, and not dismissed out of excessive caution reflecting a more engaged regulatory stance toward the digital asset market.
Losses extended to most major altcoins, with Ether falling 1.7% to $4,162.54, while XRP dropped 4.1% to $2.89.
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