Bitcoin price today: drops to $111.5K amid rate and inflation concerns

Bitcoin edged lower on Wednesday, staying in a sideways range amid growing uncertainty over the trajectory of U.S. interest rates, especially ahead of key inflation data due in the coming days.

Broader cryptocurrency prices also remained subdued, with the sector largely lagging behind the wider rally in risk-driven markets, as traders priced in greater confidence that the Federal Reserve will cut interest rates next week.

Bitcoin fell 1.3% to $111,576.5 by 9:04 a.m. Moscow time.

Major crypto-related stocks, including Circle Internet Group Inc (NYSE:CRCL) and Bullish Inc (NYSE:BLSH), rebounded sharply after recent losses in late Tuesday trading. But this did not translate into higher crypto prices.

Bitcoin stalls ahead of inflation data

The world’s largest cryptocurrency largely remained within a narrow trading range observed for nearly a month, after falling from record highs reached in mid-August.

Uncertainty over the U.S. economy and interest rates has been the key factor for bitcoin’s price action, as traders avoided speculative assets in favor of more economically sensitive sectors.

The rally in tech stocks, which bitcoin tends to track, was mainly driven by optimism around artificial intelligence — something crypto markets have little direct exposure to.

While bitcoin had risen to record highs amid optimism over more crypto-friendly regulation in the U.S., markets are now awaiting another such catalyst.

Rising doubts over the long-term sustainability of corporate bitcoin purchases also weighed on sentiment. The token showed only a muted positive response to recent buying by major holders MicroStrategy (NASDAQ:MSTR) and Metaplanet Inc (TYO:3350) in early September.

Attention is now fully focused on upcoming U.S. inflation data for signals on rates. Lower rates are generally favorable for crypto assets as they free up more liquidity for speculative trading.

U.S. producer price index data is due later on Wednesday, while consumer price index data will follow on Thursday. These indicators will be closely watched for signs of price pressure, especially given that higher U.S. import tariffs took effect in August.

The data comes just a week before the Federal Reserve meeting, for which markets are pricing in a 93.1% chance of a 25 basis-point rate cut, and a 6.9% chance of a 50 basis-point cut, according to CME Fedwatch.

Crypto prices today: altcoins fall with bitcoin

The broader cryptocurrency market declined on Wednesday, tracking bitcoin’s weakness.

• Ether fell 1.4% to $4,304.15

• XRP dropped 1.4% to $2.9510

• Solana rose 0.4%

• Cardano lost 1%

• Dogecoin slipped 0.7%

• $TRUMP was unchanged

See also: "Stablecoins strengthen their role as a key driver of liquidity growth in the crypto economy"

#Bitcoin (BTC) #Bearish Trading

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