Bitcoin prices weakened on Thursday, retreating after a brief rebound, as investors positioned cautiously ahead of critical U.S. economic reports. The world’s largest cryptocurrency dropped 0.7% to $111,786.6 as of 02:28 ET (06:28 GMT), sliding back below the $112,000 threshold.

The decline followed a modest recovery on Wednesday when Bitcoin briefly touched $114,000, though momentum quickly faded. Earlier in the week, a wave of liquidations erased nearly $1.5 billion in long positions across global crypto exchanges, underscoring the vulnerability of highly leveraged markets. Thin liquidity conditions amplified the sell-off, dragging Bitcoin down from above $115,000.

Fed Caution Limits Risk Appetite

Investor sentiment remained fragile after recent remarks from Federal Reserve officials. Chair Jerome Powell cautioned that monetary policy carries “no risk-free path,” noting the dangers of easing too rapidly or too slowly. His comments, echoed by other policymakers, signaled that the Fed’s next steps will hinge on data.

This outlook dampened risk-taking across global markets, with traders awaiting several key U.S. reports for direction:

• Weekly jobless claims (Thursday), expected near 230,000
• Final estimate of Q2 GDP (Thursday)
• Core PCE inflation index (Friday), projected at 2.9% year-on-year

Lower inflation could strengthen the case for future Fed rate cuts, a development that often supports risk assets like cryptocurrencies. For now, caution dominates as traders weigh whether macroeconomic signals will bring relief or renewed pressure.

Altcoins Extend Market Losses

The sell-off was not limited to Bitcoin. Major altcoins tracked broader weakness, with Ethereum sliding to its lowest level in nearly two months.

• Ethereum (ETH): -4% to $4,013.33
• XRP (XRP): steady at $2.85
• Solana (SOL): -3.2%
• Cardano (ADA): -2.7%
• Polygon (MATIC): -2.5%
• Dogecoin (DOGE): -2%
• $TRUMP token: -1.5%

Ethereum’s decline to a seven-week low highlighted the cautious tone across digital assets. With Bitcoin struggling to hold above $112,000, broader volatility in the crypto sector is expected to remain elevated in the days ahead.