Investing.com-- Bitcoin extended its losing streak for the fourth day on Thursday, hovering near a three-month low as ongoing uncertainty over U.S. tariffs continued to pressure risk-sensitive assets, while investors awaited a crucial inflation report due this week for cues on Federal Reserve interest rates.
The world’s largest cryptocurrency fell 1.55% to $86,383.0 by 09:37 ET (14:37 GMT), remaining near its lowest level since mid-November 2024.
The token fell to as low as $82,332.9 in the previous session.
Trump’s mixed cues on tariffs add to risk-off mood
President Donald Trump has reaffirmed his commitment to imposing 25% tariffs on imports from Canada and Mexico but indicated a potential delay, pushing the implementation date from March 4 to April 2.
This ongoing uncertainty surrounding trade policies has introduced volatility into global financial markets, including the cryptocurrency sector. Historically, the announcement of new tariffs has led to increased market instability, prompting investors to shift away from riskier assets like cryptocurrencies.
Recent data reflects this trend. The potential for escalated trade tensions may lead to sustained volatility, influencing investment strategies and market dynamics in the near term.
PCE inflation data awaited for Fed rate cues
Investors are exercising caution ahead of the upcoming release of the U.S. Personal Consumption Expenditures (PCE) inflation data on Friday.
This data is pivotal in assessing the Federal Reserve’s future interest rate decisions. Recent economic indicators, such as a significant decline in consumer confidence and near-stagnant business activity in February, have intensified discussions about potential rate cuts.
However, persistently high inflation continues to influence the Fed’s policy considerations.
Recent projections indicate that inflation remains above the Federal Reserve’s 2% target, contributing to the uncertainty surrounding monetary policy.
BlackRock (NYSE:BLK)’s spot Bitcoin ETF logs record daily outflow
In tandem with the crypto market’s decline, BlackRock’s spot Bitcoin ETF, IBIT, experienced record net outflows of $418.1 million on Wednesday.
The previous largest daily outflow for IBIT was $332.6 million on Jan. 2, just before Bitcoin surged to its all-time high of over $109,000. Still, IBIT has only recorded 21 days of net outflows since launching in January 2024.
Even after losing $741.1 million this week, IBIT remains the top U.S. spot Bitcoin ETF, with over $40.2 billion in cumulative net inflows and $51.6 billion in assets under management, according to The Block’s iShares Bitcoin Trust Tracker.
Trading volume remains strong, with IBIT accounting for 72% of Wednesday’s total activity in the space. It saw $4.1 billion in trades out of the $5.7 billion total for spot Bitcoin ETFs, reflecting sustained investor engagement amid volatility.
Meanwhile, U.S. spot Ethereum ETFs saw $94.3 million in net outflows on the same day, marking a five-day streak of withdrawals that now totals $244.4 million. BlackRock’s ETHA product led the decline, seeing $69.8 million in outflows.
Crypto price today: altcoins outperform Bitcoin but gains still limited
Most altcoins performed better than Bitcoin on Thursday, but gains remained limited amid a broader risk-off mood.
World no.2 crypto Ethereum lost 1.6% to $2,347.59 on Thursday, recording a steep fall for the fourth consecutive day.
World no. 3 crypto XRP added 0.5% to $2.22.
Solana edged 2.9% higher, and Polygon gained 4.1%, while Cardano rose 1.6%.
Among meme tokens, Dogecoin climbed 3%, while $TRUMP rose 2.8%.
Ayushman Ojha contributed to this report.