Bitcoin slips below USD 112,000 ahead of US inflation data

Bitcoin (BTC), the world’s largest cryptocurrency, fell more than 1 percent early Wednesday trading, dropping below the key psychological level of USD 112,000.

By 9:31 AM Amman time, Bitcoin was trading at around USD 111,789, down roughly USD 1,220 in recent hours. 

The daily range stood between a low of USD 110,938 and a high of USD 111,816, suggesting selling pressure in the market.

The decline comes amid caution across risk assets, including cryptocurrencies and equities, for two main reasons: 

• Recent profit-taking after Bitcoin’s gains in previous days. 
• Investor anticipation of key US inflation data today and tomorrow.
• The inflation figures are expected to weigh heavily on the Federal Reserve’s interest rate decision next week.

Higher interest rates typically drain liquidity from markets, simultaneously making volatile assets like Bitcoin less attractive. 

Analysts still see USD 110,750 as a key support level that could allow a rebound if held firmly, but a break further below may trigger more short-term declines.

The broader direction of the cryptocurrency market remains tied to global economic data and investor sentiment in the weeks ahead.