Bitcoin Outlook Darkens on US Inflation Data

The Bitcoin outlook has darkened due to US inflation data that failed to support hopes for a near-term Federal Reserve rate cut, according to CoinShares.

The firm stated that cryptocurrency investment flows turned negative as investors reassessed expectations for easier monetary policy after the release of consumer price index (CPI) figures.

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

The firm attributed this downturn to persistent inflation, which could keep Federal Reserve policy restrictive for longer, limiting the appeal of riskier assets such as Bitcoin.