Bitcoin Holds at $83,390 Ahead of U.S. Inflation Data

Bitcoin traded flat at approximately $83,390 on Wednesday as investors awaited the release of U.S. consumer price inflation data. The upcoming report is expected to influence the Federal Reserve System's interest-rate decision on October 28. Markets currently price in a 78% probability that rates will remain unchanged following a quarter-point hike in September.

Analysts warn that a stronger-than-expected inflation reading could pressure the cryptocurrency by increasing expectations for higher interest rates. Zaye Capital Markets noted that the recent recovery reflects improving short-term risk appetite rather than a sustained bullish reversal.

Market momentum remains weak due to a lack of institutional support. Spot Bitcoin ETFs saw $65 million in net outflows on Monday, contributing to total October outflows of $451 million. Exness reported that the rebound lacks strong institutional support, while low trading volumes across retail and institutional sectors have led to exaggerated price movements without lasting momentum.