Bitcoin Dips Ahead of Inflation Data, Oil Prices Continue Rise
Bitcoin prices slipped to around $83,700 on Wednesday morning, marking a 0.3% decline from the previous day's levels. The drop comes as traders wait for the release of the PCE inflation data, which is expected to show a rise in inflation rates for August.
A higher-than-expected inflation reading would likely lead to increased bets on rate hikes, adding pressure to the bond market, which has already experienced a selloff this month. The 30-year yield hit its highest since 2002 just a day ago, and the dollar remains near its strongest level since July.
Meanwhile, oil prices have been rising, with Brent crude hitting $103 a barrel and increasing by around 14% in September, despite Middle East crude flows returning to pre-war levels. In contrast, Ether saw a slight decline of 0.7%, while other major cryptocurrencies like HYPE dropped nearly 2%.
CryptoQuant's onchain analysis suggests that Bitcoin's spot demand has decreased by approximately 170,000 BTC over the past 30 days, with futures demand growth dropping by around 90% since September 14.