Bitcoin slips as U.S. inflation fails to spark gains, ETFs see August's first two-day drawdown
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Bitcoin price declined to its lowest level since August 3, slipping below $63,000 as spot bitcoin ETFs saw $192 million in consecutive outflows. While U.S. equities climbed following cooler-than-expected producer price inflation data, crypto markets lagged with bitcoin and ether falling, although some altcoins outperformed. Derivatives data indicate growing bearish positioning in tokens like Bitcoin Cash and Hedera.
Why it matters
The outflows from spot bitcoin ETFs and lack of bullish catalysts have weakened bitcoin's price, wiping out last week’s rally and signaling a potential shift in investor sentiment. Meanwhile, growing bearish derivatives positioning in several tokens may point to expectations of further downward movement. The mixed performance among altcoins and the easing of bitcoin’s volatility reflect ongoing uncertainty in crypto markets amid broader economic data.
Key context
Bitcoin experienced its first back-to-back days of ETF outflows since late July, with $192 million exiting these products. The U.S. reported producer price inflation cooling to 4.7%, below forecasts, which boosted U.S. equities but did not translate into gains for cryptocurrencies. In derivatives markets, Bitcoin Cash futures saw increased open interest alongside falling prices, indicative of short selling, supported by deeply negative funding rates. Hedera (HBAR) also showed clear bearish signals with negative funding rates and cumulative volume deltas.
Key numbers and entities
Bitcoin price dropped below $63,000, specifically to around $62,848.13. Ether was at $1,877.70, down 0.73%. Bitcoin Cash traded near $205.29 with its futures open interest rising by 10% to 1.64 million tokens. Bitcoin open interest increased by over 3% to 765,000 BTC. The 30-day implied volatility index for bitcoin fell below 36%. Notable altcoins include Ether.fi (ETHFI) up 11.5% before a slight pullback, Cosmos (ATOM) rising over 10%, Fetch.ai (FET), and Monero (XMR) showing modest gains. The source cites data from SoSoValue and Deribit.
What remains unclear
The source does not flag any open questions or limitations regarding the data and interpretations presented.