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Bitcoin Faces Consolidation as CPI Data Looms
Bitcoin remained largely muted on Thursday, trading slightly lower amid continued exchange-traded fund (ETF) outflows and cautious market positioning ahead of key U.S. inflation figures. By 01:55 ET (06:55 GMT), the world’s largest cryptocurrency was down 0.3% at $86,554.6, reflecting subdued market activity.
Despite strong gains earlier in 2025, Bitcoin has struggled to mount a decisive rebound above $90,000, indicating that the market is in a consolidation phase rather than a clear expansion. Investors continue to navigate a complex environment shaped by institutional behavior, macroeconomic signals, and regulatory developments.
Persistent ETF Outflows Reduce Institutional Support
Data from recent trading sessions show that U.S.-listed spot Bitcoin ETFs have continued to experience net redemptions, which analysts say have weakened a key pillar of institutional demand. These outflows have removed critical supportthat helped underpin Bitcoin’s rally earlier in the year.
“Persistent ETF outflows have intensified pressure on Bitcoin, limiting its ability to reclaim previous highs,” market commentators noted.
With this withdrawal of capital, Bitcoin remains vulnerable to price stagnation and short-term volatility as institutional investors reassess exposure amid macroeconomic uncertainty.
Focus Shifts to U.S. Inflation Data
Market attention this Thursday is squarely on the U.S. Consumer Price Index (CPI) for November, which is expected to show a notable uptick in annual headline inflation. Economists suggest that higher-than-expected inflation could complicate the Federal Reserve’s deliberations on future interest rate decisions.
Earlier in the week, mixed U.S. labor market signals added to market uncertainty. Nonfarm payrolls rebounded modestly in November following a sharp decline in October, while the unemployment rate rose to its highest level in years. These conflicting indicators have muddied expectations for the Fed’s next policy moves and tempered conviction on whether further monetary easing is likely.
Analysts emphasize that “the interplay of employment data and inflation readings will heavily influence the Fed’s policy trajectory,” noting that investors are watching these developments closely.
Fed Outlook and Political Commentary
Adding to the macroeconomic uncertainty, former President Donald Trump commented on his preferred nominee for the next Federal Reserve chair, indicating a preference for someone who believes in significantly lower interest rates. These remarks have stirred debate among economists and market participants regarding the central bank’s potential direction.
“Trump’s comments underscore ongoing political influence over monetary policy debates, which could shape market sentiment in the months ahead,” financial analysts noted.
The combination of ETF outflows, cautious positioning ahead of CPI data, and political commentary on the Fed chairmanship has created a delicate environment for Bitcoin, leaving traders and observers closely monitoring developments.
Technical Market Observations
From a technical perspective, Bitcoin continues to trade below the $90,000 threshold, a level that has proven to be a strong resistance point throughout the year. Analysts point out that prolonged trading in the $82,000–$87,000 rangesignals a period of consolidation, with short-term volatility expected around key economic announcements.
“The market appears to be digesting both macroeconomic signals and recent ETF outflows, keeping Bitcoin’s price movement relatively constrained,” technical analysts noted.
While some investors anticipate potential upside if inflation data meets expectations and institutional demand returns, others highlight that continued caution is likely until clear market catalysts emerge.
Broader Market Sentiment
The crypto market overall is navigating a risk-off environment, with investor sentiment tempered by persistent ETF outflows and macroeconomic uncertainty. Analysts emphasize that while Bitcoin has not broken sharply lower, the lack of decisive bullish momentum reflects a market in wait-and-see mode.
“Bitcoin remains in consolidation as market participants weigh inflation data, employment reports, and Fed policy guidance,” commentators observed.
In summary, Bitcoin’s price action remains subdued under $87,000, with ETF outflows, upcoming inflation data, and political commentary on the Federal Reserve influencing market behavior. Traders and observers are closely monitoring developments for signs of either renewed momentum or further consolidation.
