Bitcoin was relatively stable on Thursday, continuing its cautious performance amid ongoing outflows from exchange-traded funds and cautious positioning ahead of key US inflation data that could shape the Federal Reserve's outlook on interest rates.
The world's largest cryptocurrency was trading down 0.3% at $86,554.6 by 10:55 AM Saudi time.
The world's largest cryptocurrency has failed to make a decisive recovery above the $90,000 level after significant gains earlier in the year, reflecting a market in a consolidation phase rather than expansion.
Outflows from exchange-traded funds and Federal Reserve caution are putting pressure on the market.
Investors continued to withdraw capital from U.S.-listed Bitcoin exchange-traded funds, extending a pattern of net redemptions that has weakened a key source of institutional demand.
Data from recent sessions shows continued outflows from exchange-traded funds (ETFs), which market participants say have removed crucial support that had been underpinning Bitcoin's rally earlier in the year, further putting downward pressure on the price.
The market's attention this Thursday is focused on US consumer prices for November, with anticipation of the release of the Consumer Price Index (CPI).
Economists expect inflation data to show a significant rise in overall annual prices, which could complicate the Federal Reserve's deliberations on future interest rate moves.
Earlier in the week, delayed US payroll and employment data revealed a mixed labor market. Nonfarm payrolls rebounded modestly in November after a sharp decline in October, but the unemployment rate climbed to its highest level in years.
The conflicting signals have muddied expectations about the Federal Reserve's next policy steps and dampened confidence about whether there will be further easing in the future.
President Donald Trump indicated that his preferred candidate to head the next Federal Reserve would be someone who believes in a significant reduction in interest rates , remarks that sparked debate about the direction of the central bank.
Cryptocurrency prices today: Altcoins decline, Cardano drops 5%
Most alternative currencies fell on Thursday amid a cautious mood, even as the original cryptocurrency stabilized.
Ethereum, the world's second-largest cryptocurrency, fell 3.7% to $2,828.92.
XRP, the world's third-largest cryptocurrency, fell 4.7% to $1.83.
Solana fell by 4%, while Cardano and Polygon each declined by 5%.
Among the meme currencies, both Dogecoin and $TRUMP fell by 4%.
