Bitcoin Holds Near $87,000 as ETF Outflows and Fed Uncertainty Weigh on Sentiment

Bitcoin traded largely flat near the $87,000 level on Wednesday, stabilizing after modest losses earlier in the week, as persistent outflows from U.S.-listed exchange-traded funds (ETFs) and uncertainty over the Federal Reserve’s interest-rate outlook kept investors cautious.

The world’s largest cryptocurrency was last seen little changed at $86,748 by 01:51 ET (06:51 GMT). Price action has remained range-bound, with Bitcoin struggling to regain upward momentum amid subdued risk appetite and a lack of fresh market catalysts, even as broader financial markets showed signs of stabilization.

ETF Outflows Pressure Prices

Ongoing redemptions from U.S. spot Bitcoin ETFs have continued to weigh on sentiment. Recent data showed net outflows in several sessions, extending a trend that has raised concerns about cooling institutional demand. These ETF flows had previously provided a key source of support for Bitcoin’s rally earlier in the year, and their reversal has removed an important tailwind for prices.

Fed Policy Outlook Adds to Caution

Cryptocurrency markets have also been influenced by recent U.S. economic data, particularly labor market indicators, which have complicated expectations for future monetary policy. While payrolls data pointed to slower job growth and a gradual increase in the unemployment rate, the cooling in the labor market has not been pronounced enough to give the Federal Reserve a clear signal to accelerate interest rate cuts.

With inflation still running above the Fed’s target, policymakers appear cautious, leaving markets uncertain about the timing and pace of any future easing. This uncertainty has continued to weigh on risk-sensitive assets, including cryptocurrencies.

Investor focus now shifts to U.S. inflation data due on Thursday, which could provide clearer guidance on the Fed’s next policy steps.

Altcoins Remain Subdued

Elsewhere in the crypto market, most major altcoins showed limited movement amid thin liquidity and a broadly cautious tone. Ethereum, the second-largest cryptocurrency by market value, slipped 0.4% to $2,934.92.

XRP rose 1.4% to $1.92, while Solana edged slightly lower. Cardano and Polygon were largely unchanged.

Among meme tokens, Dogecoin gained 0.7%, while the $TRUMP token declined 1%.