Bitcoin's Recent Performance

Bitcoin has fluctuated during the European trading session, with a 1.6% decline over the past day. After dipping to $60,300, it has managed to recover to $61,000. This price action comes as the broader cryptocurrency market experiences a 2% drop, reflected by the CoinDesk 20 Index.

Market Implications

Attention is set on the September CPI report due later today, which analysts predict will indicate a 0.1% month-on-month and 2.3% year-on-year rise. Higher than expected results may prompt calls to halt interest-rate cuts, which could negatively impact risk-sensitive assets like cryptocurrencies.

Insights from Fed Meeting Minutes

The latest minutes from the Federal Reserve's September meeting revealed a split among policymakers regarding interest rate strategy. "A substantial majority of participants favored cutting the interest rate by half a percentage point," though some expressed reservations regarding such a significant move.

Alex Kuptsikevich, a senior analyst at FxPro, noted, "Crypto sentiment has shifted back into the fear zone (39), contrasting sharply with 72 (greed) observed in equities." This sentiment shift corresponds with the stronger dollar and greater appeal of bonds, decreasing institutional interest in Bitcoin.

Ether ETFs Activity

In the U.S., Ether ETFs reported no inflows or outflows for the second time this week, continuing a trend of inactivity that has seen net outflows of $562 million since their launch. This contrasts with Bitcoin ETFs, which have experienced nearly $19 billion in net inflows since January.

Chart of the Day

Bitcoin’s seven-day options skew has decreased to -8.5%, the lowest level in four weeks, indicating a preference for protective options amid downside risks.