Bitcoin traded in a narrow range on Thursday, extending its subdued price action as ongoing ETF outflows and cautious positioning ahead of key U.S. inflation data kept investors on the sidelines.
The world’s largest cryptocurrency was last seen down 0.3% at $86,554.6 by 01:55 ET (06:55 GMT).
Despite strong gains earlier in the year, Bitcoin has struggled to reclaim the $90,000 level, signaling a period of consolidation rather than renewed upward momentum.
ETF outflows and Fed uncertainty pressure Bitcoin
Selling pressure has been reinforced by continued withdrawals from U.S.-listed spot Bitcoin exchange-traded funds. Recent sessions have seen persistent net outflows, weakening one of the main sources of institutional demand that previously supported Bitcoin’s rally.
Market participants note that the steady ETF redemptions have removed a critical layer of price support, contributing to Bitcoin’s inability to stage a meaningful rebound.
Investor focus is now firmly on the release of the U.S. Consumer Price Index for November. The inflation data is expected to play a key role in shaping expectations for the Federal Reserve’s next interest rate decision.
Economists anticipate a pickup in annual headline inflation, a development that could complicate the Fed’s path toward easing monetary policy.
Earlier U.S. labor market data added to the uncertainty. While nonfarm payrolls showed a modest rebound in November following a sharp drop in October, the unemployment rate climbed to its highest level in several years.
These mixed signals have clouded the outlook for future rate cuts and dampened risk appetite across markets.
Further complicating the picture, President Donald Trump recently said his preferred candidate for the next Federal Reserve chair would strongly support much lower interest rates. The remarks have fueled debate over the central bank’s future policy direction.
Altcoins retreat as risk appetite fades
While Bitcoin remained relatively steady, most major altcoins moved lower amid the cautious market mood.
Ethereum, the second-largest cryptocurrency by market value, fell 3.7% to $2,828.92. XRP dropped 4.7% to $1.83, while Solana slid 4%.
Cardano and Polygon each declined around 5%, underperforming the broader crypto market.
Losses also extended to meme tokens, with Dogecoin and the TRUMP token both falling roughly 4% during the session.
