Investing.com– Bitcoin was largely muted on Thursday, continuing its subdued behaviour amid sustained exchange-traded fund outflows and cautious positioning ahead of key U.S. inflation data that could shape the Federal Reserve’s outlook on interest rates.
The world’s largest cryptocurrency last traded 0.3% lower at $86,554.6 by 01:55 ET (06:55 GMT).
The world’s largest cryptocurrency has failed to mount a decisive rebound above the $90,000 mark after steep gains earlier in the year, reflecting a market in consolidation rather than expansion.
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ETF outflows, Fed caution weigh
Investors have continued to withdraw capital from U.S.-listed spot Bitcoin ETFs, extending a pattern of net redemptions that has eroded a key source of institutional demand.
Data from recent sessions show persistent ETF outflows that market participants say have removed critical support that underpinned Bitcoin’s rally earlier in the year, intensifying pressure on the price.
Market attention this Thursday is squarely on U.S. consumer prices for November, with the Consumer Price Index (CPI) due for release.
Economists expect inflation data to show a notable uptick in annual headline prices, which could complicate the Federal Reserve’s deliberations on future rate moves.
Earlier in the week, delayed U.S. payrolls and employment data revealed a mixed labour market. Nonfarm payrolls rebounded modestly in November after a sharp decline in October, but the jobless rate rose to its highest level in years.
The conflicting signals have muddied expectations for the Fed’s next policy steps and tempered conviction on whether further easing lies ahead.
President Donald Trump has indicated that his preferred nominee for the next Federal Reserve chair would be someone who believes in significantly lower interest rates, comments that have stirred debate over the central bank’s direction.
Crypto price today: altcoins slip, Cardano drops 5%
Most altcoins fell on Thursday amid a cautious mood, even as the original cryptocurrency was muted.
World no.2 crypto Ethereum fell 3.7% to $2,828.92.
World no. 3 crypto XRP dropped 4.7% to $1.83.
Solana fell 4%, while Cardano and Polygon declined 5% each.
Among meme tokens, both Dogecoin and $TRUMP fell 4%.
