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.

The European Central Bank’s interest rate decision was released on Thursday at the conclusion of the December 17–18 meeting, with the bank keeping interest rates unchanged at a range of 2.15%, the lowest level since October 2022, in line with most expectations in global markets, marking the fourth consecutive meeting with rates left on hold.

The UK interest rate decision was released on Thursday at the conclusion of the December 18 meeting, with the Bank of England cutting interest rates by around 25 basis points to a range of 3.75%, the lowest level since December 2022, in line with market expectations, marking the fourth step of British monetary easing this year.

Oil prices were steady on Thursday, as investors weighed the possibility of additional US sanctions on Russia alongside supply risks stemming from a blockade of Venezuelan oil tankers.

Brent crude slipped by one cent to $59.67 a barrel by 11:33 GMT, while US West Texas Intermediate crude rose by five cents to $55.99 a barrel.

John Evans, an analyst at PVM, said that US intentions to impose further sanctions on Russia, along with threats to block sanctioned tankers carrying Venezuelan oil, helped support prices.

Bloomberg reported on Wednesday, citing people familiar with the matter, that the United States is preparing a new round of sanctions on Russia’s energy sector if Moscow does not agree to a peace deal with Ukraine. However, a White House official told Reuters that President Donald Trump has not made any decisions regarding sanctions on Russia.

Analysts at ING said in a note that any additional measures targeting Russian oil could pose a greater risk to market supplies than Trump’s announcement on Tuesday of a potential US blockade of sanctioned tankers entering or leaving Venezuela.

In the same context, the European Union imposed sanctions on Thursday on 41 additional vessels from Russia’s so-called “shadow fleet,” bringing the total number of sanctioned ships to around 600.

Britain also imposed sanctions on 24 individuals and entities under its Russia sanctions regime, including Russian oil companies such as Tatneft and Russneft, according to a government notice issued on Thursday.

According to ING, a blockade of Venezuela could affect about 600,000 barrels per day of Venezuelan oil exports, most of which are destined for China, while exports of around 160,000 barrels per day to the United States are likely to continue. The bank noted that Chevron tankers are still sailing to the United States under a previous authorization from the US government.

At the same time, most other Venezuelan exports remained halted on Wednesday, although state oil company PDVSA resumed loading shipments of crude and fuel after operations were suspended due to a cyberattack, according to sources and customs data.

It remains unclear how any US blockade would be enforced. The US Coast Guard took an unprecedented step last week by seizing a Venezuelan oil tanker, and sources said the United States is preparing to carry out further similar interceptions.

Venezuelan oil accounts for about 1% of global oil supply.