Bitcoin struggles to hold the $85,000 level as tepid spot ETF demand offsets the bullish sentiment generated by softer U.S. inflation prints.
Bitcoin's price action shows a lack of sustained momentum, as the asset failed to maintain levels above $85,000 despite favorable macroeconomic data regarding U.S. inflation. The inability to capitalize on the cooling inflation narrative, combined with a lack of buying pressure from spot ETFs, suggests a period of consolidation or exhaustion in the current range.
Despite positive inflation data, there was insufficient buying pressure from spot ETFs to support the price at that level.
The weaker-than-expected inflation data initially acted as a catalyst, pushing prices briefly above $85,000 by cooling expectations for further Fed rate hikes.
Bitcoin retreated from its recent peak of $85,000 on Wednesday as the asset failed to maintain momentum despite cooling U.S. inflation data. The lack of significant inflows into spot exchange-traded funds left bulls unable to defend the breakout, keeping the cryptocurrency rangebound in the short term.
While softer U.S. inflation data initially sparked a rally, the move lacked follow-through from spot ETF buyers, causing the price to retreat.