Bitcoin Holds Near $86.5K as Investors Await Key U.S. Inflation Print

Key Moments

Bitcoin Steadies Below $90,000 as Momentum Fades

Bitcoin traded mostly flat on Thursday, maintaining a muted tone as investors remained cautious ahead of closely watched U.S. inflation figures that could influence the Federal Reserve’s interest rate outlook.

The world’s largest cryptocurrency was last 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 and sustain levels above the $90,000 threshold, signaling a market that is consolidating rather than pushing into a fresh expansion phase.

ETF Outflows and Policy Uncertainty Pressure Sentiment

U.S.-listed spot Bitcoin exchange-traded funds have continued to see net redemptions, extending a trend of capital withdrawals that has undermined an important pillar of institutional demand.

Recent session data pointed to ongoing ETF outflows, which market participants say have stripped away a key layer of support that had helped drive Bitcoin’s earlier rally, adding to downside pressure on prices.

Focus on U.S. CPI and Federal Reserve Outlook

Traders are now closely focused on U.S. consumer price data for November, with the Consumer Price Index (CPI) scheduled for release on Thursday. Economists expect the figures to show a notable increase in annual headline inflation, a development that could complicate the Federal Reserve’s decision-making on future rate moves.

Earlier in the week, delayed U.S. payrolls and employment data painted a mixed picture of the labor market. Nonfarm payrolls posted a modest rebound in November following a sharp drop in October, while the unemployment rate climbed to its highest level in years.

These conflicting signals have clouded expectations around the Fed’s next steps and dampened confidence over the likelihood and timing of further monetary easing.

Political commentary has also entered the discussion. President Donald Trump has indicated that his preferred nominee for the next Federal Reserve chair would be someone who believes in significantly lower interest rates, remarks that have fueled debate over the central bank’s future direction.

Altcoins Retreat as Risk Appetite Softens

Altcoins moved broadly lower on Thursday, reflecting a cautious mood across the digital asset market even as Bitcoin itself traded in a relatively tight range.

World no.2 crypto Ethereum fell 3.7% to $2,828.92, while world no. 3 crypto XRP slid 4.7% to $1.83. Solana declined 4%, and Cardano and Polygon each lost 5%.

Among meme tokens, both Dogecoin and $TRUMP retreated 4%, underscoring the risk-off tone in the broader digital asset complex.