Bitcoin moved a little lower on Thursday. It stayed calm and slow. This happened even though fresh inflation data from the US came in better than expected. Many traders are still being careful. Big investors are also pulling money out of Bitcoin funds.
Bitcoin was down about 1.2% and traded near $88,628 during the day. It has been struggling to cross the $90,000 level for a while now. Earlier this year, prices jumped fast. Now the market feels tired. It looks more like a pause than a fresh rally.
One major reason is the steady outflow from spot Bitcoin ETFs in the US. Investors have been withdrawing money for several sessions in a row. These funds had earlier helped push Bitcoin higher. With that support fading, prices are finding it hard to move up.
At the same time, new inflation numbers surprised the market. US consumer prices rose less than expected in November. This made traders hopeful that inflation is finally cooling down. The yearly inflation rate came in at 2.7%. Economists were expecting around 3.1%.
Core inflation also eased. This number removes food and energy prices. It rose 2.6% over the year. The market was expecting closer to 3%. This added to hopes that the US central bank may cut interest rates sooner than thought.
The data release was delayed due to the US government shutdown. Some parts of the report were missing. Even so, investors paid close attention. While a January rate cut still looks unlikely, expectations for a March cut have grown. The chances for a March cut rose to around 60%, up from about 54% a day earlier.
Jobs data earlier this week sent mixed signals. Hiring improved slightly in November. But unemployment climbed to its highest level in years. This confusion has made it harder for traders to predict what the Federal Reserve will do next.
Adding to the debate, President Donald Trump said he prefers a future Fed chair who supports much lower interest rates. This has sparked fresh discussions about the central bank’s direction.
The cautious mood also hit other cryptocurrencies. Ethereum slipped about 1% and traded near $2,962. XRP fell nearly 3% to around $1.91. Solana and Cardano both dropped more than 4%. Polygon lost close to 3%. Meme coins were not spared either. Dogecoin and the TRUMP token fell around 3%.
