Bitcoin faces $243 million outflows as core inflation clouds Fed easing outlook

  • CoinShares recorded weekly outflows from digital asset investment products.
  • $243 million flowed out, versus approximately $1.3 billion of inflows previously.
  • James Butterfill said core inflation was stronger than expected on September 11.

Digital asset investment products recorded $243 million in weekly outflows, reversing roughly $1.3 billion of inflows the previous week. CoinShares Head of Research James Butterfill said headline Consumer Price Index data was broadly in line with expectations on September 11, but core inflation was somewhat stronger than expected. That reading could limit expectations for rapid Federal Reserve easing, keeping financial conditions tighter for risk assets such as Bitcoin. Bitcoin had recovered toward $80,000, reaching around $78,700 according to a separate Crypto Times report published September 11. CoinShares also said Treasury bond buybacks have not significantly reduced long-term yields, which remain affected by inflation concerns, fiscal pressures and the term premium. The firm discussed a potential larger Treasury purchasing program if yields stay high, but the U.S. government has not announced such a measure. Investors are watching inflation, Federal Reserve policy, digital asset flows and Treasury yields as they assess Bitcoin's next move.

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