Bitcoin, the dominant cryptocurrency, suffered a significant decline on Wednesday, extending its losses from the previous day. This downturn was primarily driven by concerns about economic weakness in both the United States and China. Investors are particularly anxious about the potential for a deeper economic slowdown, especially as they await the release of the US jobs report on Friday.

The broader retreat from riskier investments in global markets, fueled by economic fears, has also contributed to Bitcoin's decline. Other major cryptocurrencies have experienced similar losses, with XRP, Shiba Inu, and Cardano all trading in the red.

Crypto Market Outlook

Technical analyst Katie Stockton from Fairlead Strategies LLC has expressed a long-term neutral outlook for Bitcoin. The decline in open interest for CME Bitcoin futures and the net outflows from US Bitcoin exchange-traded funds indicate market concern.

Historically, September has been a challenging month for cryptocurrencies. Bitcoin has experienced an average loss of value of more than 8% during the last five years. The upcoming Federal Reserve meeting and its rate decision will also play a significant role in determining the short-term outlook for the crypto market.