The cryptocurrency market remained range-bound on Wednesday, with Bitcoin trading near $68, 000 after falling below the $67,000 mark earlier in the session.
As of 3:13 GMT, the world’s largest cryptocurrency was trading 0.25 percent lower at $67,302.
Bitcoin has fluctuated between $65,100 and $72,000 since February 6, as volatility cooled in the wake of a February 5 selloff that dragged prices to their lowest level since October 2024.
Software shares impact crypto sentiment
Bitcoin’s earlier downturn came alongside a weaker start for U.S. equities, led by renewed losses in the struggling software segment. The iShares Expanded Tech-Software Sector ETF (IGV) slipped 3 percent before rebounding to $82.01, leaving it about 30 percent below its October peak.
Software shares have faced sustained pressure as increasingly sophisticated AI tools raise concerns about disruption to traditional business models. With markets increasingly framing Bitcoin as a form of software, fears that AI could undermine the sector have also weighed on sentiment toward the cryptocurrency.
The broader Nasdaq declined 0.8 percent before rising 1.14 percent, while the S&P 500 eased 0.6 percent before gaining 0.82 percent on Wednesday.
Read: Bitcoin falls below $68,000 as market awaits key U.S. data amid holiday-thinned trading
Market focus remains on key U.S. data
Wider cryptocurrency markets traded within a narrow range on Wednesday, with most major altcoins still recovering from sharp recent declines as overall sentiment toward the sector remained fragile.
Investors also turned cautious ahead of a string of key U.S. economic releases, including the minutes of the Federal Reserve’s January meeting, due later in the day.
Digital assets remain highly sensitive to shifts in U.S. interest rate expectations, given their speculative profile and dependence on accommodative liquidity conditions. Earlier this month, President Donald Trump’s nomination of Kevin Warsh as the next Fed Chair triggered sharp losses across crypto markets, as Warsh was perceived as less dovish on monetary policy.
Among major tokens on Wednesday, Ether, the world’s second-largest cryptocurrency, gained 0.89 percent to $1,985.70, while XRP climbed 0.76 percent to $1.4676. BNB dipped, while Cardano posted a 0.66 percent increase to $0.2831, whereas Solana edged 0.89 percent lower.
In the meme coin segment, Dogecoin rose 0.37 percent, while $TRUMP advanced 2.65 percent.
Looking ahead, the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred measure of inflation, is scheduled for release on Friday. Together with the Fed minutes, the data will be closely watched for further signals on the outlook for U.S. interest rates.
