Bitcoin steadied on Wednesday after recouping some recent losses, although traders were seen remaining largely cautious towards crypto markets amid uncertainty over U.S. trade tariffs and lower interest rates.

Safe havens such as gold and the U.S. dollar outpaced Bitcoin this week, as rising concerns over high debt levels in the developed world also added to risk aversion. Caution ahead of key U.S. labor data this week, which is likely to factor into the outlook for U.S. rates, also weighed. 

Bitcoin rose 0.5% to $110,812.6 by 01:38 ET (05:38 GMT).

Increased Bitcoin buying by world no.1 corporate holder Strategy, formerly MicroStrategy (NASDAQ:MSTR), did little to buoy prices. The Michael Saylor-led firm purchased about 4,048 Bitcoin for nearly $450 million in the last week of August.

Elsewhere, digital tokens belonging to U.S. President Donald Trump’s crypto venture– World Liberty Financial– tumbled during debut in public markets earlier this week. 

Bitcoin hit by weakening risk appetite amid rates, tariff uncertainty 

The world’s largest crypto had fallen to a two-month low of around $107,000 earlier in the week, leading broader declines in crypto markets. It had tumbled some 12% from a record high hit in mid-August. 

Bitcoin’s recent losses also coincided with a sharp decline in Wall Street, as risk-driven assets were spooked by rising bond yields across major economies. 

Markets were on edge ahead of closely watched reading on the U.S. labor market this week, with nonfarm payrolls data due on Friday.

Any signs of further deterioration in the labor sector could prime the Federal Reserve to cut interest rates later this month, although a weakening labor market also presents increased risks around the U.S. economy.

Weak purchasing managers index readings for August furthered this notion. Still, markets maintained an over 90% probability that the Fed will cut rates by 25 basis points in September, CME Fedwatch showed. 

Uncertainty over U.S. trade tariffs also weighed, after an appeals court ruled that most President Donald Trump’s trade levies were illegal, and will need to be withdrawn by October 14. 

Trump signaled that he will appeal the decision with the Supreme Court, adding to the list of ongoing legal challenges faced by his administration. Trump’s attempts to fire Fed Governor Lisa Cook were also met with legal resistance, with the case likely to head to the top U.S. court. 

Bitcoin largely tracks U.S. technology stocks, and had fallen in tandem with the NASDAQ Composite in recent sessions. Rising bond yields across the globe, amid concerns over stretched government debt levels in the developed world, spooked traders. 

Crypto price today: altcoins rise from recent losses

Broader crypto prices all rose tracking Bitcoin, recouping some measure of recent losses.

World no.2 crypto Ether was an outlier, falling 1.6% to $4,315.03. XRP rose 0.6% to $2.8267, while Solana and Cardano rose 2.8% and 1.2%, respectively. 

Among meme tokens, Dogecoin rose 0.2%, while $TRUMP added 0.8%.