Bitcoin Outlook Darkens as US Inflation Dims Hopes for Fed
Bitcoins outlook weakened after US inflation data offered little support for a near-term Federal Reserve rate cut, according to CoinShares. The firm said crypto investment flows turned negative as investors reassessed expectations for easier monetary policy. Headline consumer prices rose in line with expectations, while core inflation came in slightly hotter than forecast. The figures reduced expectations for near-term easing, adding pressure to risk-sensitive assets such as Bitcoin. US inflation has made the near-term setup harder for Bitcoin, with global digital asset ETP flows turning negative this week. At the same time, Treasury pressure is building as bond buybacks struggle to bring long-term yields down.@jbutterfill looks at what that could mean for… CPI Adds Pressure on Bitcoin CoinShares said digital asset investment products recorded $243 million in weekly outflows, reversing about $1.3 billion of inflows the previous week. Bitcoin traded around $77,000 to $78,000 after failing to hold above $80,000. Related: Gulf–Iran Hormuz Talks Could Cool Oil and Shift Fed Outlook The firm said persistent inflation could keep Federal Reserve policy restrictive for longer, limiting the appeal of riskier assets. A weaker inflation reading or clearer signals of rate cuts could provide Bitcoin with a stronger backdrop. Treasury Pressure Builds CoinShares also pointed to pressure in the US Treasury









