Bitcoin prices edged higher on Wednesday, rising 0.33 percent to $83,366, as cryptocurrency markets traded cautiously ahead of closely watched U.S. inflation data that could influence the Federal Reserve’s monetary policy outlook.
The world’s largest cryptocurrency had earlier fallen 0.16 percent, reflecting subdued sentiment as investors avoided significant bets ahead of the release of September’s consumer price index (CPI) figures.
Spot ETF inflows support Bitcoin
Broader cryptocurrency markets also traded in narrow ranges, with several major tokens posting modest losses amid profit-taking, risk aversion and concerns over rising oil prices against the backdrop of continued military tensions in the Middle East.
Bitcoin drew some support from a recovery in capital inflows into spot exchange-traded funds (ETFs) tracking the cryptocurrency. Inflows reached $175.6 million on Tuesday, their highest level in nearly two weeks, according to SoSoValue data.
The recovery followed a sharp $681 million outflow last week, highlighting renewed investor interest after a period of significant withdrawals. Spot Bitcoin ETF inflows had risen sharply in the third quarter before losing momentum during the first week of October.
However, the sustainability of these inflows is likely to depend on incoming U.S. economic data and shifting expectations for interest rates.
Cryptocurrencies rise ahead of CPI data
Among major digital assets, Ether, the world’s second-largest cryptocurrency, gained 0.02 percent to $2,505.93, while XRP advanced 0.84 percent.
Solana, Cardano and BNB traded higher, while memecoins Dogecoin and Official Trump rose by less than 1 percent each.
Market participants remained focused on the U.S. CPI report due later on Wednesday, which is expected to provide fresh insight into inflationary pressures and the Federal Reserve’s next policy moves.
Inflation is expected to have remained relatively persistent in September, while core CPI, which excludes food and energy prices, is also projected to have accelerated.
A stronger-than-expected inflation reading could reinforce expectations that the Federal Reserve will raise interest rates again, potentially weighing on cryptocurrencies and other risk-sensitive assets.
Rising yields weigh on crypto sentiment
Cryptocurrency markets have faced additional pressure from rising U.S. Treasury yields in October, as investors increasingly anticipate at least one more Federal Reserve rate hike in 2026.
Higher interest rates and bond yields can reduce the appeal of speculative assets such as cryptocurrencies by increasing the relative attractiveness of interest-bearing investments and tightening financial conditions.
Against this backdrop, investors are likely to remain sensitive to inflation data and any subsequent changes in interest-rate expectations, while ETF flows could provide further clues about institutional demand for Bitcoin.
