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Investing.com-- Bitcoin rose slightly on Wednesday, trading above $88,000 after modest losses earlier in the week, but gains remained limited as sustained outflows from U.S.-listed exchange-traded funds and uncertainty over the Federal Reserve’s interest-rate path kept investors cautious.
The world’s largest cryptocurrency was last up 1.3% at $88,497 by 09:53 ET (14:53 GMT).
Bitcoin has remained in a narrow range, struggling to regain momentum as subdued risk appetite and a lack of fresh catalysts continued to weigh on prices, even as broader financial markets steadied.
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Bitcoin steady amid ETF outflows, Fed caution
Pressure on Bitcoin has been exacerbated by continued outflows from spot Bitcoin ETFs in the United States. Data showed that these funds recorded net redemptions in recent sessions, extending a trend of withdrawals that has raised concerns about waning institutional demand.
ETF outflows have removed an important source of support that had underpinned Bitcoin’s rally earlier this year.
Crypto markets also took cues from U.S. economic data, with investors reassessing the outlook for monetary policy following mixed signals from the labour market.
Recent U.S. payrolls data pointed to slower job growth alongside a gradual rise in the unemployment rate, suggesting the labour market may be cooling, but not enough to give the Federal Reserve a clear signal to accelerate rate cuts.
The data complicated expectations around the Fed’s next moves, with policymakers still balancing signs of easing employment conditions against inflation that remains above target.
As a result, markets have become less certain about the timing and pace of future rate reductions, a factor that has weighed on risk-sensitive assets such as cryptocurrencies.
Attention now turns to U.S. inflation data due on Thursday.
Crypto price today: altcoins rangebound
Most altcoins showed little movement on Wednesday amid a cautious mood. Media reports also cited thin liquidity for the tepid moves.
World no.2 crypto Ethereum fell 1.2% to $2,957.16.
World no. 3 crypto XRP gained 1% to $1.94.
Solana climbed 1.2% while Cardano and Polygon were largely unchanged.
Among meme tokens, Dogecoin gained 1.2%, while $TRUMP added 0.8%.
(Ayushman Ojha contributed to this report.)
