Bitcoin slid below $67,000 early Wednesday as traders weighed a more hawkish U.S. macro outlook.
Bitcoin fell 3.1% over the past 24 hours to $66,804 as of 1:13 a.m. ET.
What traders blamed
Andri Fauzan Adziima, research lead at Bitrue, tied the move to shifting expectations for U.S. policy after Kevin Warsh’s nomination as Federal Reserve chair.
He said the nomination signaled “tighter liquidity and fewer rate cuts ahead.”
Adziima said:
“Traders now watch for stabilization around $60,000-$65,000 support or renewed macro easing to spark any rebound.”
Derivatives and ETF signals
Vincent Liu, CIO of Kronos Research, said derivatives data suggests much of the excess leverage has been flushed out.
He said exchanges saw “deep deleveraging,” with funding rates indicating most leveraged positions have been cleared.
Liu added that institutional capital appears to be waiting for clearer catalysts, such as sustained exchange-traded fund momentum or fresh macro signals.
On Tuesday, U.S. spot bitcoin ETFs recorded $166.56 million in net inflows, which was up from $145 million the previous day, according to SoSoValue.
Broader market backdrop
Asian equities were higher Wednesday morning, led by South Korea’s Kospi, up 1.24% by midday.
Hong Kong’s Hang Seng index rose 0.42%, while Japanese markets were closed for a public holiday.
U.S. stocks were mixed Tuesday, with the S&P 500 down 0.33% and the Nasdaq Composite down 0.59%.
The Dow Jones Industrial Average rose 0.1%.
