Bitcoin faced renewed selling pressure on Wednesday, with its price slipping below the critical $66,000 mark as U.S. Federal Reserve meeting minutes indicated a likelihood of upcoming interest rate hikes. The digital asset, which had climbed as high as $68,500 overnight, declined nearly 2.5% in a 24-hour period to trade at approximately $66,200 during U.S. afternoon sessions. This move tests lower support levels after recent volatility and persistent stalling under the $70,000 threshold.
The cautious tone from the Fed has once again influenced sentiment across the broader market. Equity indexes, including the Nasdaq and S&P 500, showed mixed early trading before easing, while the U.S. dollar and gold gained on safe-haven demand. Rising yields also put pressure on risk assets, including cryptocurrencies, as investors brace for a tighter monetary stance.
In this challenging environment for Bitcoin, notable developments on the institutional front provide additional context. David Solomon, CEO of Goldman Sachs, revealed publicly that he now owns a small amount of Bitcoin, a marked shift from his previous characterization of the cryptocurrency as purely speculative. Speaking at the World Liberty Forum on Wednesday, Solomon said he remains an active observer of Bitcoin and technology's impact on finance but holds only modest exposure personally. This admission from a leading Wall Street figure signals growing, albeit measured, institutional curiosity amid the digital asset's price swings.
Meanwhile, Harvard University, a major institutional investor, disclosed a strategic adjustment by selling portions of its Bitcoin holdings while increasing positions in Ethereum. Regulatory filings reveal this repositioning amid ongoing crypto market turbulence, interpreted by analysts as a more balanced approach to digital asset allocation during uncertain periods. Such moves highlight the nuanced outlook organizations maintain as they seek to manage crypto exposure amid price unpredictability and evolving regulatory landscapes.
Technical analysts also point to Bitcoin's current formation within a tightening symmetrical triangle pattern. Market commentator Ali Martinez suggested this could precede a sizeable move of up to 15% in either direction. The interplay of macroeconomic pressures, institutional positioning, and technical setups hints at increased volatility in the near term, raising the stakes for traders and investors alike.
Supporting Bitcoin miners showed some relative strength amid the broader weakness. Riot Platforms stock jumped nearly 9% following a push by activist investor Starboard Value to accelerate the company’s transition into high-margin AI data center infrastructure. This shift reflects industry attempts to diversify revenue streams beyond solely mining operations and align with secular growth trends in artificial intelligence. The bullish interest in Riot contrasts with Bitcoin’s price softness, underscoring divergent dynamics within the crypto sector.
Investor Focus Tightens as Bitcoin Awaits Direction
As Bitcoin struggles to break decisively above $68,000, the confluence of Fed policy uncertainty and sector-specific changes has introduced fresh caution. Market participants are weighing a possible interest rate increase that would increase the cost of capital against signs of sustained institutional interest and innovation within crypto infrastructure. The measured entry of high-profile investors and portfolio rebalancing by large institutions convey a long-term belief in the asset class, even as near-term price swings test resolve.
The price action over the past 12 to 24 hours suggests that Bitcoin is settling into a critical phase. Whether the cryptocurrency can reclaim and hold above $70,000 will likely depend on macro developments and the Fed’s next moves on monetary policy. Traders and analysts remain alert to technical signals and evolving participation from both retail and institutional stakeholders.
In essence, Bitcoin is at a crossroads where external monetary tightening pressures collide with internal sector evolution and investor recalibration. This balance will shape the trajectory over coming days and weeks, with a pronounced move anticipated from the current consolidation phase.