Bitcoin slipped 0.3% to $61,589.3 by 17:10 ET (21:10 GMT) on Wednesday, surrendering most of a short-lived rebound seen earlier in the week after top corporate holder Strategy increased its Bitcoin holdings. The move came as broader risk assets, particularly equities, declined while investors shifted into the U.S. dollar and other safe-haven instruments.<\/p>\n
Market sentiment was pressured by heightened tensions between Washington and Tehran. The U.S. military launched \u201cself-defense\u201d strikes against Iran following the downing of an American helicopter over the Strait of Hormuz, an incident for which Iran has not claimed responsibility. President Donald Trump stated that Iran had taken too long to negotiate a peace deal and \u201cwill have to pay the price,\u201d adding that a joint U.S.-Israeli campaign had significantly weakened Iran\u2019s military.<\/p>\n
Trump said the U.S. had \u201chit them hard yesterday and we\u2019re going to hit them again hard today,\u201d while reiterating that Iran \u201cvery simply cannot have a nuclear weapon.\u201d Against this backdrop, oil prices advanced on Wednesday.<\/p>\n
Bitcoin\u2019s decline was tempered by indications that institutional selling pressure may be easing. Data from SoSoValue showed spot Bitcoin ETFs recorded $168 million in outflows so far this week, compared with more than $5 billion in outflows over the prior three weeks that had weighed on crypto markets.<\/p>\n
U.S. consumer price index data for May aligned with forecasts and supported market expectations that the Federal Reserve will leave interest rates unchanged at next week\u2019s meeting. Headline CPI rose 4.2% year-on-year, up from 3.8% in April, while prices increased 0.5% month-on-month, slightly below April\u2019s 0.6% gain.<\/p>\n
Core CPI, excluding food and energy, increased 0.2% month-on-month, under the 0.3% consensus and down from 0.4% in April. On an annual basis, core CPI rose 2.9%, in line with expectations and slightly above 2.8% in the prior month. Over 60% of the annual headline increase was attributed to energy, with energy prices up 23.5% year-on-year and gasoline surging 40.5%, the highest readings since 2022. Core goods prices slipped 0.1% on a monthly basis.<\/p>\n
The relatively contained core inflation prompted traders to modestly scale back expectations for further rate hikes this year and to slightly increase the implied probability of a quarter-point rate cut, according to the CME FedWatch tool.<\/p>\n
Broader crypto markets tracked Bitcoin lower. Ether, the second-largest cryptocurrency, fell 1.9% to $1,618.30. XRP dropped 3.9%, Solana declined 3.4%, and Cardano slid 4.1%. Among memecoins, Dogecoin lost 2.9%, while $TRUMP edged down 1.8%.<\/p>\n
Why did Bitcoin fall on Wednesday?<\/strong> How are spot Bitcoin ETFs affecting the market?<\/strong> What did the latest U.S. inflation data show?<\/strong> How did major altcoins perform?<\/strong>
Bitcoin declined 0.3% to $61,589.3 amid a broader risk-off move driven by escalating U.S.-Iran tensions, although losses were limited by signs of cooling outflows from spot Bitcoin ETFs.<\/p>\n
Spot Bitcoin ETFs saw $168 million in outflows so far this week, a notable slowdown compared with over $5 billion in outflows over the past three weeks that had previously pressured crypto prices.<\/p>\n
May headline CPI rose 4.2% year-on-year and 0.5% month-on-month, in line with expectations, while core CPI increased 2.9% annually and 0.2% monthly, reinforcing expectations that the Federal Reserve will hold rates steady at its next meeting.<\/p>\n
Altcoins mostly followed Bitcoin lower: Ether fell 1.9% to $1,618.30, XRP dropped 3.9%, Solana lost 3.4%, Cardano slipped 4.1%, Dogecoin declined 2.9%, and $TRUMP eased 1.8%.<\/p>\n