Bitcoin Hits Weekly Low Ahead of U.S Inflation Data, as ETFs Record Net Outflows
Summary:
Bitcoin's price dipped to its lowest weekly level amid anticipation of upcoming U.S. inflation data and a Federal Reserve meeting. This came as U.S. spot Bitcoin exchange-traded funds (ETFs) faced their first net outflow in over 19 trading days. Bitcoin's value decreased by 2.3% and other digital currencies followed a similar trend. The decrease transpired as net outflows were reported from US Bitcoin ETFs, amounting to $64.9 million, despite modest inflows noted from Bitwise and BlackRock’s ETFs.
As U.S. inflation data loom and a Federal Reserve meeting is scheduled for Tuesday, Bitcoin (BTC) sees its value plummet to the lowest level in the week. Furthermore, the first net outflow in over 19 trading days was reported by US-based Bitcoin exchange-traded funds (ETFs). Over the past one day, Bitcoin's price sunk by 2.3%, perching at $68,186 around 3:00 am UTC, June 11—the lowest rate since June 3 as per Cointelegraph Markets Pro statistics. Other digital currencies such as Ether (ETH), Solana (SOL) and Dogecoin (DOGE) have followed suit with similar downturns in the last 24 hours.
This downward trend in Bitcoin arises after the cumulative net outflow from the 11 U.S. spot Bitcoin ETFs amounted to $64.9 million on June 10. These figures highlight the first instance of net outflow in a month, as reported by Farside Investors. Leading the pack was the Grayscale Bitcoin Trust (GBTC) that registered net outflows of $39.5 million, followed by a $20.5 million outflow from the Invesco Galaxy Bitcoin ETF (BTCO). The Fidelity Wise Origin Bitcoin Fund (FBTC), on the other hand, observed a meagre $3 million outflow. This occurred while both Bitwise and BlackRock’s ETFs reported mild inflows of $7.6 million and $6.3 million, respectively.
The U.S. Bureau of Labor Statistics is about to unveil its inflation figures for May via the Consumer Price Index (CPI) on June 11. Reportedly, analysts foresee a 0.1% inflation rise following a 0.5% increase in April. If this happens, the yearly figure might climb to 3.4%, with core inflation predicted to rise 0.3% in May as it did in April, according to Morningstar.
The Federal Open Market Committee (FOMC) will also determine the direction of the Fed's monetary policy in a two-day meeting starting June 11. As per investment research firm Zacks, it's unlikely the Fed would roll out any interest rate cut, with the expectation of maintaining its towering target rate between 5.25% and 5.5%, which has lasted for 23 years.
Published At
6/11/2024 9:05:47 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.