Investing.com-- Bitcoin fell marginally on Wednesday as bargain buying after a recent rout provided only limited support, with the focus now turning to the conclusion of a Federal Reserve meeting due later in the day.
Market sentiment remained fragile after the White House reiterated President Donald Trump’s plans to impose trade tariffs on China, Canada, and Mexico. Traders were also on edge after concerns over a new Chinese artificial intelligence model- DeepSeek- battered global financial markets.
While overnight gains in Wall Street suggested that immediate concerns over DeepSeek had abated, risk-driven assets still appeared to be on shaky ground. Wall Street futures retreated in Asian trade on Wednesday.
Bitcoin fell 0.5% to $102,140.0 by 08:14 ET (13:14 GMT).
Trump policy uncertainty, Fed jitters pressure crypto
Crypto markets remained largely uncertain over Trump’s plans for crypto regulation.
The U.S. President had last week signed an executive order calling for the drafting of a crypto regulatory framework and the potential forming of a national digital asset reserve.
But he gave scant information about what the regulatory framework would entail. The crypto industry’s biggest point of contention over Trump’s order was that he did not mention Bitcoin even once.
Additionally, concerns over Trump’s plans for trade tariffs weighed on risk appetite, as the White House said that a February 1 deadline for tariffs against China, Canada, and Mexico was still on the cards.
Beyond Trump, markets were also largely risk-averse before the conclusion of a two-day Federal Reserve meeting on Wednesday.
The central bank is widely expected to keep rates steady and strike a hawkish chord amid concerns over sticky inflation. Fed Chair Jerome Powell is also expected to push back against Trump’s calls for deeper interest rate cuts.
Czech c.bank head wants to invest in Bitcoin- FT
Czech National Bank Governor Aleš Michl told the Financial Times that he wants to invest billions of euros of the central bank’s reserves in Bitcoin, as a means to diversify its holdings.
The move could see the CNB invest up to 5% of its reserves into the cryptocurrency, worth more than $7 billion.
Any investment by the CNB could potentially mark a groundbreaking move for Bitcoin and crypto adoption, given that most major central banks have outright rejected the notion of investing in crypto.
Michl plans to propose the investment plan to the CNB’s board at a meeting this Thursday.
Crypto.com to delist Tether, other stablecoins
In other crypto-related developments, digital assets exchange Crypto.com announced it will suspend certain token services in compliance with the European Union's Markets in Crypto Assets (MiCA) regulation.
In a statement to clients on Tuesday, the exchange said that, starting January 31, it will no longer offer services for select stablecoins, including Tether, PayPal USD, and Pax Dollar, as well as Crypto.com Staked ETH and Staked SOL.
Under MiCA, stablecoin issuers and staking service providers must obtain authorization to operate within the European Economic Area. “In line with MiCA regulatory requirements, we will suspend the purchase of affected assets on the 31st January, 2025,” a Crypto.com spokesperson reportedly told CoinDesk.
In a notice last week, the European Securities and Markets Authority reminded exchanges of their obligation to comply with MiCA’s stablecoin rules, urging them to stop offering unauthorized tokens to EU clients within the next two months.
Crypto price today: altcoins dip, $TRUMP back in red
Broader cryptocurrency prices retreated in tandem with Bitcoin, although they were trading above the week’s lows.
World no.2 crypto Ether slid 2.3% to $3,109.38, while XRP dropped 4% to $3.045.
$TRUMP- a memecoin launched by the U.S. President earlier this month- sank 8.5% to $27.20, resuming its downward trend after wiping out about 60% of its value from a post-launch high. The token has been a source of heightened volatility for crypto markets.
Cardano, Solana, and Polygon each fell roughly 4%, while Dogecoin shed 2.4%.
Ambar Warrick contributed to this report.