Bitcoin stabilized after a volatile session on Wednesday as cryptocurrency markets were caught between escalating trade tensions between the United States and China and growing confidence that the Federal Reserve will cut interest rates in October.
The world's largest cryptocurrency fell to $109,000 on Tuesday before recovering some ground, trading down 0.2% at $112,292.5 by 8:30 a.m. KSA time.
Bitcoin is affected by US-China tensions, and a dovish Powell provides some support.
Renewed trade tensions between the United States and China have been the biggest pain point for Bitcoin in recent sessions, with the cryptocurrency falling to a low of $103,000 in a flash crash over the weekend.
While the coin has rebounded sharply from initial losses, it remains well below its recent record high of over $126,000.
Bitcoin and cryptocurrency markets received some support from dovish comments from Federal Reserve Chairman Jerome Powell on Tuesday.
Powell signaled a possible end to the Federal Reserve's quantitative tightening activities, which markets considered largely dovish. The Fed chairman also noted growing uncertainty about the US economy, particularly in light of the ongoing government shutdown.
Powell's remarks have fueled growing confidence that the Federal Reserve will cut interest rates at its meeting in late October. Markets are pricing in a 99.6% probability of a 25 basis point cut, up from 97.4% last week, according to the CME FedWatch indicator.
Coinbase invests in India's CoinDCX at a $2.5 billion valuation
Coinbase Inc. (NASDAQ:COIN) said Tuesday it has invested an unspecified amount in Indian cryptocurrency exchange CoinDCX, as part of its efforts to gain a greater foothold in India and the Middle East.
CoinDCX separately stated that the investment values the exchange at $2.45 billion, significantly higher than the sub-$1 billion valuation reported earlier this year. The exchange also noted that Coinbase has been an investor in CoinDCX since 2020.
Previous reports indicated that Coinbase was interested in acquiring CoinDCX. The American cryptocurrency exchange was recently approved to offer services in India, but it has lagged significantly behind competitors like Binance in gaining a foothold in the world's largest cryptocurrency user base.
Recent data shows that India leads the world in cryptocurrency adoption, with over 100 million holders in the country by the end of 2024.
Cryptocurrency Prices Today: Altcoins Recover Some Losses
Broader cryptocurrency prices posted some gains on Wednesday, as risk appetite improved after Powell's remarks.
Ether, the world's second-largest cryptocurrency, rose 1% to $4,111.32, while XRP fell 0.2% to $2.5016.
Solana and Cardano rose by 2.4% and 0.4%, respectively, while BNB fell by 3.5%.
Among meme coins, Dogecoin and $TRUMP rose by 0.5% each.
