The fear of another Fed rate hike has cooled down, but Bitcoin ($BTC) is still struggling to reclaim the $81,000 level. đ€
Septemberâs CPI report showed annual inflation at 3.7%, while core inflation came in at 2.6%. Both figures were above expectations, creating fresh uncertainty around the Federal Reserveâs next move.
Initially, traders increased their expectations of an October rate hike, pushing the implied probability close to 50%. However, those expectations later dropped toward 25%.
So, if rate-hike fears are fading, why is Bitcoin still under pressure? đ
đ ETF Outflows Are Another Warning Sign
US spot Bitcoin ETFs reportedly recorded $150.5 million in net outflows on October 14, reversing the previous dayâs $175.7 million in inflows.
This suggests that institutional demand may still be facing pressure, even as expectations for another rate hike decline.
đ„ What Iâm Watching Next:
đč Bitcoinâs ability to reclaim the $81K level.
đč Spot Bitcoin ETF flows â will inflows return?
đč US Treasury yields and changing Fed expectations.
đč Overall market sentiment and institutional demand.
One important thing to remember: expectations of multiple rate hikes through 2027 donât mean those hikes are happening immediately.
My Take: A decline in rate-hike expectations alone may not be enough to trigger a strong Bitcoin recovery. Iâll be watching ETF flows and Treasury yields for clearer signs of a potential reversal.
đŹ Whatâs your opinion? Is BTC falling because of inflation fears, institutional outflows, or uncertainty about the Fedâs next move?
Share your thoughts below! đ
â ïž Not financial advice. Always do your own research before making investment decisions.
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