Bitcoin Outlook Darkens Amid Weakened Hopes for Rate Cuts

The recent US inflation data has dimmed hopes for a near-term Federal Reserve rate cut, casting a shadow over Bitcoin's outlook. According to CoinShares, crypto investment flows turned negative as investors reassessed their expectations for easier monetary policy.

The firm noted that the consumer price index rose in line with expectations, while core inflation came in slightly hotter than forecast. This has reduced expectations for near-term easing, adding pressure to risk-sensitive assets like Bitcoin.

CoinShares reported digital asset investment products recording $243 million in weekly outflows, reversing about $1.3 billion of inflows the previous week. Bitcoin traded around $77,000 to $78,000 after failing to hold above $80,000.