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Source: Newsmaker.id
Bitcoin traded relatively steadily on Wednesday (Oct 14), hovering around US$83,390 and remaining below the US$84,000 mark. Investors are largely holding their positions ahead of the release of US consumer inflation data (CPI), a key indicator for the Federal Reserve's future policy direction. Markets currently estimate a roughly 78% probability that the Fed will maintain interest rates at its October meeting.
The CPI data is a focal point because higher-than-expected inflation could reignite expectations of US interest rate hikes. Such a scenario could drive up bond yields and strengthen the US dollar, thereby putting pressure on risk assets like Bitcoin. Conversely, lower inflation could alleviate pressure on cryptocurrencies by fostering hopes for looser monetary policy.
Meanwhile, other major cryptocurrencies showed mixed performance. Ethereum traded around US$2,478, XRP near US$0.59, BNB around US$1,050, Solana near US$187, and Cardano around US$0.60. Altcoin movements continue to track Bitcoin's sentiment and broader risk-asset market conditions as investors await fresh catalysts from US economic data.
Regarding investment flows, Bitcoin faces challenges as institutional demand has yet to show consistent strengthening. Spot Bitcoin ETFs recorded net outflows of approximately US$65 million on Monday, while total fund flows for October have turned negative, totaling around US$451 million. These figures suggest that Bitcoin's current rally is not yet fully underpinned by significant institutional capital inflows.
Bitcoin's price action is also influenced by low trading volumes, making it more susceptible to heightened volatility. After a strong performance in the third quarter, the market began seeing profit-taking activity in early October. This situation means that Bitcoin's upward trend has not yet fully regained its momentum, even though the price is showing signs of recovery.
Newsmaker Analysis: Bitcoin remains in a consolidation phase, with key catalysts being US inflation data and the Federal Reserve's policy direction. If the CPI exceeds expectations, pressure on Bitcoin could intensify due to a strengthening dollar and rising yields. Conversely, a lower-than-expected CPI could pave the way for a rebound. However, as long as ETF flows remain negative and institutional demand has not yet strongly recovered, Bitcoin's gains are likely to be limited, requiring confirmation through increased trading volume and fresh capital inflows.
Source: Newsmaker.id