Bitcoin’s price took a hit, dropping to a weekly low just before U.S. inflation data was set to be released and ahead of a Federal Reserve meeting scheduled for Tuesday. Additionally, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced their first net outflow in over 19 trading days.
In the past 24 hours, Bitcoin (BTC) fell by 2.3%, reaching $68,186 at around 3:00 am UTC on June 11, marking its lowest point since June 3, as per data from Cointelegraph Markets Pro. Other cryptocurrencies like Ether (ETH), Solana (SOL), and Dogecoin (DOGE) also saw a decline in the last day.
The drop in Bitcoin’s price occurred during early-morning Asia trading hours, as shown in the chart above. This trend followed the news that 11 U.S. spot Bitcoin ETFs saw a combined net outflow of $64.9 million on June 10, their first outflow in a month, per Farside Investors. The Grayscale Bitcoin Trust (GBTC) led the outflows with $39.5 million, 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).
At the same time, there were modest inflows of $7.6 million and $6.3 million into Bitwise and BlackRock’s ETFs, respectively. The U.S. Bureau of Labor Statistics is slated to release May’s Consumer Price Index (CPI) figures on June 11, with expectations of a 0.1% increase following April’s 0.5% rise, bringing the year-on-year figure to 3.4%.
Analysts also anticipate core inflation to go up by 0.3% in May, similar to April’s figure, according to Morningstar. The Federal Reserve’s monetary policy will be determined during a two-day Federal Open Market Committee (FOMC) meeting beginning on the same day. Zacks, an investment research firm, predicts that there is no likelihood of an interest rate cut, with the central bank expected to maintain its target rate at a 23-year high of 5.25% to 5.5%.
As the market reacts to these developments, one question lingers: How can Bitcoin payments make a comeback?