Bitcoin Holds in Tight Range Ahead of Key U.S. Inflation Data

Bitcoin slips as traders await Fed cues
Bitcoin prices edged lower on Wednesday, with the cryptocurrency locked in a narrow trading band as investors weighed the outlook for U.S. interest rates ahead of crucial inflation readings.

As of 02:04 ET (06:04 GMT), Bitcoin (BTC) fell 1.3% to $111,576.5, extending a period of rangebound trading that has dominated since the sharp correction from mid-August record highs.

Caution dominates ahead of U.S. data
Uncertainty over the U.S. economic outlook and the Federal Reserve’s policy path kept crypto sentiment subdued. While equities and gold have rallied on growing conviction of a rate cut next week, cryptocurrencies have largely lagged.

Technology stocks—often correlated with Bitcoin—extended gains on artificial intelligence optimism, but crypto markets saw little spillover. Traders are instead awaiting fresh catalysts, with the focus squarely on U.S. inflation data this week.

The producer price index (PPI) is due Wednesday, followed by the more closely watched consumer price index (CPI) on Thursday. The reports will be key to shaping the Fed’s September 16–17 meeting, where markets are pricing in a 93.1% probability of a 25 bps rate cut, and a 6.9% chance of a larger 50 bps move, CME FedWatch showed.

Corporate Bitcoin strategy under scrutiny
Bitcoin also faced headwinds from skepticism over corporate treasury strategies centered on large-scale Bitcoin purchases. Recent acquisitions by MicroStrategy (NASDAQ:MSTR) and Metaplanet Inc (TYO:3350) failed to lift sentiment, with critics warning that corporate Bitcoin holdings make firms more vulnerable to market volatility.

Shares of crypto-linked firms offered a contrast, with Circle Internet Group (NYSE:CRCL) and Bullish Inc (NYSE:BLSH) rebounding overnight. But the gains failed to translate into momentum for crypto prices.