Bitcoin Outlook Darkens as Inflation Data Dims Rate Cut Hopes

Bitcoin's outlook has darkened due to the latest US inflation data, which offered little support for a near-term Federal Reserve rate cut.

CoinShares reported that digital asset investment products recorded $243 million in weekly outflows, reversing about $1.3 billion of inflows from the previous week.

The firm said this is because investors reassessed their expectations for easier monetary policy after the inflation data came in line with expectations for headline consumer prices and slightly hotter than forecast for core inflation.

This reduced expectations for near-term easing, adding pressure to risk-sensitive assets such as Bitcoin, which traded around $77,000 to $78,000 after failing to hold above $80,000.