Bitcoin steadies as traders analyze US data

Bitcoin saw relatively subdued trading on Thursday, extending its cautious performance amid continued outflows from exchange-traded funds (ETFs), alongside broad market caution ahead of key US inflation data that could influence the Federal Reserve’s interest rate outlook.

The world’s largest cryptocurrency traded 0.3% lower at $86,554.6 as of 01:55 AM US Eastern Time (06:55 GMT).

Bitcoin failed to stage a strong and sustained rebound above the $90,000 level following the sharp gains recorded earlier this year, reflecting a market entering a consolidation and stabilization phase rather than renewed expansion.

ETF outflows and Fed caution weigh on prices

Investors continued to pull capital from US-listed spot Bitcoin ETFs, extending a pattern of net redemptions that has weakened one of the most important sources of institutional demand.

Recent session data show persistent ETF outflows, which market participants say have removed a key pillar of support that had fueled Bitcoin’s earlier rally this year, adding further pressure on prices.

Market focus on Thursday centers on US consumer price data for November, with the release of the Consumer Price Index (CPI).

Economists expect the inflation data to show a notable rise in the annual headline inflation rate, a development that could complicate Federal Reserve deliberations over future interest rate moves.

Earlier this week, delayed US jobs and employment data painted a mixed picture of the labor market, with nonfarm payrolls rising modestly in November after a sharp decline in October, while the unemployment rate climbed to its highest level in years.

These conflicting signals have clouded market expectations regarding the Fed’s next policy steps and reduced confidence in the continuation of monetary easing.

US President Donald Trump previously indicated that his preferred candidate for the next Federal Reserve chair would be someone who strongly believes in cutting interest rates, comments that have sparked broad debate over the future direction of central bank policy.

Cryptocurrency prices today: altcoins decline, Cardano down 5%

Most major altcoins declined on Thursday amid cautious market sentiment, despite Bitcoin’s relative stability.

Ethereum, the world’s second-largest cryptocurrency, fell 3.7% to $2,828.92.

Meanwhile, XRP, the third-largest cryptocurrency by market capitalization, slipped 4.7% to $1.83.