Traders are seemingly going risk-off ahead of a U.S. CPI print and a Fed monetary policy meeting, with Bitcoin falling to a weekly low.

Bitcoin Price Drops Ahead of Key U.S. Economic Events

Bitcoin experienced a significant drop to a weekly low ahead of the release of U.S. inflation data and a Federal Reserve meeting scheduled for Tuesday. This decline was accompanied by the first net outflow from U.S. spot Bitcoin exchange-traded funds (ETFs) in over 19 trading days.

Market Movement

Bitcoin (BTC) fell by 2.3% over the last 24 hours, hitting a low of $68,186 around 3:00 am UTC on June 11, marking its lowest point since June 3, as reported by Cointelegraph Markets Pro. This decline was mirrored by other major cryptocurrencies, including Ether (ETH), Solana (SOL), and Dogecoin (DOGE).

ETF Outflows

The drop in Bitcoin's price coincided with significant net outflows from U.S. spot Bitcoin ETFs. According to Farside Investors, these ETFs collectively saw a net outflow of $64.9 million on June 10, marking their first net outflow in a month.

The Grayscale Bitcoin Trust (GBTC) led with $39.5 million in net outflows, followed by $20.5 million from the Invesco Galaxy Bitcoin ETF (BTCO) and $3 million from the Fidelity Wise Origin Bitcoin Fund (FBTC). In contrast, Bitwise and BlackRock’s ETFs recorded modest inflows of $7.6 million and $6.3 million, respectively.

Upcoming Economic Indicators

The U.S. Bureau of Labor Statistics is set to release May’s Consumer Price Index (CPI) figures on June 11. Analysts expect inflation to rise by 0.1% after a 0.5% increase in April, potentially bringing the year-on-year figure to 3.4%. Core inflation is forecast to rise by 0.3% in May, consistent with April's increase, according to Morningstar.

Federal Reserve Meeting

The Federal Open Market Committee (FOMC) will hold a two-day meeting starting June 11 to discuss monetary policy. Investment research firm Zacks predicts that there is no chance the Fed will cut interest rates, with expectations that the central bank will maintain its current target rate of 5.25% to 5.5%, the highest in 23 years.

Conclusion

Bitcoin's recent decline is closely tied to broader economic indicators and movements in the financial markets. The upcoming inflation data and the Federal Reserve meeting are likely to have significant impacts on market sentiment and future price movements. Investors and analysts will be watching these events closely to gauge their effects on the cryptocurrency market.