Bitcoin fell sharply on Wednesday, losing over 2.5% to hit its lowest in a week, as risk appetite waned ahead of U.S. inflation data that could impact the Fed's interest rate decisions. Rumors of a possible U.S. government sale of a large volume of confiscated tokens worth about $4 billion added pressure on the rate, although no official action has been taken yet.
The cryptocurrency market as a whole also declined, remaining on the sidelines of the growth in stock markets. However, Bitcoin began to recover its positions on Thursday, rising to $60,900, adding about 0.5%.
Investors are focusing on the upcoming publication of U.S. inflation data, which could provide clarity on the Fed's next steps regarding interest rates. Following the September meeting, most participants supported a rate cut of 50 basis points, but further decisions remain uncertain. The headline Consumer Price Index (CPI) is expected to decline slightly in September, while the core CPI is likely to remain unchanged.
