Bitcoin experienced a drop in price to a weekly low as investors awaited U.S. inflation data and a Federal Reserve meeting scheduled for Tuesday. Additionally, United States spot Bitcoin exchange-traded funds (ETFs) saw their first net outflow in over 19 trading days.
In the past 24 hours, Bitcoin (BTC) fell by 2.3% to reach $68,186 at 3:00 am UTC on June 11, marking its lowest point since June 3 according to Cointelegraph Markets Pro. Other cryptocurrencies such as Ether (ETH), Solana’s (SOL), and Dogecoin (DOGE) also experienced declines during the same period.
The downward trend in Bitcoin’s price began in early-morning Asia trading hours over the past week. This came as U.S. spot Bitcoin ETFs recorded a combined net outflow of $64.9 million on June 10, marking their first net outflow in a month, as reported by Farside Investors. The Grayscale Bitcoin Trust (GBTC) led with $39.5 million in net outflows, followed by $20.5 million from the Invesco Galaxy Bitcoin ETF (BTCO) and a minor $3 million outflow from the Fidelity Wise Origin Bitcoin Fund (FBTC). In contrast, Bitwise and BlackRock’s ETFs saw modest inflows of $7.6 million and $6.3 million, respectively.
The U.S. Bureau of Labor Statistics is scheduled to release May figures for the Consumer Price Index (CPI) on June 11, with analysts predicting a 0.1% increase after a 0.5% rise in April. This would bring the year-on-year figure to 3.4%, with core inflation also expected to rise 0.3% in May, matching April’s increase, according to Morningstar.
The Federal Reserve’s monetary policy will also be determined during a two-day Federal Open Market Committee (FOMC) meeting beginning on the same day. Zacks, an investment research firm, projected that there is little chance of the Fed implementing an interest rate cut, with the central bank likely to maintain its target rate between 5.25% and 5.5%, the highest in 23 years.
As investors await these developments, the big question remains: How can Bitcoin payments make a resurgence?