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Bitcoin Declines as ETFs End 19-Day Gains Amid US Inflation Concerns

Jun 11, 2024 at 03:15

Bitcoin’s price dropped to a weekly low as traders turn cautious ahead of U.S. inflation data and a Federal Reserve policy meeting. Meanwhile, U.S. spot Bitcoin ETFs saw their first net outflow in over 19 trading days.

Ahead of the U.S. inflation report and a Federal Reserve meeting scheduled for Tuesday, Bitcoin’s price fell to its lowest weekly point. U.S. spot Bitcoin exchange-traded funds (ETFs) also recorded their first net outflow in more than 19 trading days.

Bitcoin (BTC) decreased by 2.3% over the past 24 hours, reaching $68,186 around 3:00 am UTC on June 11, its lowest level since June 3, according to Cointelegraph Markets Pro.

Other major cryptocurrencies followed suit, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) also experiencing declines in the last 24 hours.

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This drop in Bitcoin’s value comes after the 11 U.S. spot Bitcoin ETFs collectively reported a 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) saw the largest net outflow of $39.5 million, followed by $20.5 million from the Invesco Galaxy Bitcoin ETF (BTCO), and a smaller $3 million outflow from the Fidelity Wise Origin Bitcoin Fund (FBTC).

In contrast, there were modest inflows of $7.6 million and $6.3 million into ETFs managed by Bitwise and BlackRock, respectively.

The U.S. Bureau of Labor Statistics is scheduled to release May’s Consumer Price Index (CPI) data on June 11, which measures inflation.

Analysts forecast a 0.1% increase in inflation following a 0.5% rise in April, bringing the year-on-year rate to 3.4%. Core inflation is expected to rise by 0.3% in May, mirroring April’s increase, according to Morningstar.

The Federal Reserve’s monetary policy decisions will be made during a two-day Federal Open Market Committee (FOMC) meeting starting on the same day.

Investment research firm Zacks predicts that the Federal Reserve will maintain its current interest rate of 5.25% to 5.5%, the highest in 23 years, with no rate cut expected.

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