Despite a softer inflation reading that might typically buoy risk assets, persistent outflows from spot Bitcoin exchange-traded funds weighed on the market on June 25. Bitcoin dropped to an intraday low of $58,189 before recovering toward $60,100 by press time. The Federal Reserve's preferred inflation measure, the Personal Consumption Expenditures index, came in roughly as expected for May, with a headline figure of 4.1% year over year and core inflation at 3.4%. While the data offered some relief on the inflation front, the muted price response highlights how ETF demand has become a key driver of Bitcoin's short-term direction. Continued redemptions from these funds appear to be capping upside momentum, leaving traders watching whether inflows resume to determine if the inflation-driven relief can hold and support a sustained move higher above current levels.
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