Bitcoin traded within a narrow range on Wednesday, while the broader cryptocurrency market posted slight losses as traders refrained from making major bets ahead of key U.S. inflation data releases.
The world's largest cryptocurrency fell 0.26% to $83,453.4 as of 9:00 AM.
The broader crypto market saw slightly steeper losses, extending a sluggish start to October driven by a combination of profit-taking and risk aversion.
Caution regarding rising oil prices also weighed on crypto markets amidst ongoing military tensions in the Middle East.
Bitcoin Supported by Rebound in ETF Inflows
Bitcoin's losses were partially mitigated by a recovery in capital inflows into spot exchange-traded funds (ETFs) tracking the cryptocurrency.
Inflows totaled $175.6 million on Tuesday—the highest level in nearly two weeks, according to SoSoValue. This signals a partial recovery following a sharp outflow of $681 million last week.
However, the future trajectory of inflows will likely be shaped by upcoming U.S. economic data and expectations regarding interest rates.
Inflows into spot Bitcoin ETFs surged in the third quarter, though the pace of growth slowed during the first week of October.
Crypto Market Today: Altcoins Fall, CPI Data in Focus
The broader cryptocurrency market declined on Wednesday as investors awaited U.S. Consumer Price Index (CPI) data with caution. Ether, the world's second-largest cryptocurrency, fell 1.1% to $2,506.09, while XRP declined 0.7%.
Solana lost 1.3%, Cardano fell 2.1%, and BNB dropped 0.4%.
Memecoins Dogecoin and $TRUMP each declined 0.5%.
CPI data due on Wednesday is expected to show that inflation remained generally persistent in September, with core CPI also likely having accelerated last month.
Persistent inflation strengthens the case for further interest rate hikes by the Federal Reserve—a scenario that weighs on crypto markets.
The sector has faced pressure in October due to rising U.S. Treasury yields, as markets bet that the Fed will raise rates at least once more in 2026.