Bitcoin Holds Steady Near $87,000 Amid Market Pressures
Bitcoin (BTC) is stable near $87,000 after recent losses. Weak demand for spot Exchange-Traded Funds (ETFs) is pressuring the market. However, Strategy Inc. continues buying, adding 10,645 BTC this week. Softer US inflation data may help Bitcoin recover soon.
Spot ETF Outflows Pressure Bitcoin Price
Bitcoin’s recent price drop links to lower institutional demand. According to SoSoValue, spot Bitcoin ETFs saw outflows totaling $338.81 million by Thursday. This is the largest weekly outflow since November 2021. If outflows grow, Bitcoin’s price might fall further.
On the other hand, Strategy Executive Chairman Michael Saylor said his company bought 10,645 BTC for $980 million on Monday. This follows last week’s purchase of 10,624 BTC. Strategy Inc. shows strong long-term confidence in Bitcoin despite market challenges.
US Inflation Data Could Help Bitcoin Bounce Back
The US Consumer Price Index (CPI) for November rose 2.7% year-on-year, below the expected 3.1%. Core CPI, which excludes food and energy, increased 2.6%, missing the 3% forecast. This is the slowest pace since 2021.
Lower inflation strengthens hopes the Federal Reserve may cut interest rates sooner. The CME FedWatch tool shows a 26.6% chance of a 25 basis point rate cut in January. More liquidity could boost risky assets like Bitcoin.
Increased Market Fear and Large BTC Transfers
The Crypto Fear and Greed Index dropped to 16 from 29 last week. This shows strong risk-off sentiment among traders, matching the price decline and ETF outflows.
Lookonchain reported two wallets linked to Matrixport sent 4,000 BTC worth $347.56 million to Binance on Wednesday. Large transfers to exchanges often signal possible selling, which adds bearish pressure to Bitcoin.
