Bitcoin (BTC) price prediction: US CPI suppresses upward momentum, BTC Spot ETF expected to see inflows for nine consecutive days.

Bitcoin (BTC) has pulled back from its historical high, currently reporting around 117,900 USD in the Asian afternoon session today (16). The U.S. June consumer price index (CPI) has suppressed expectations for a rate cut by The Federal Reserve (FED) in September, impacting the buying momentum for crypto assets. However, on the positive side, Bitcoin spot ETF is expected to see inflows for nine consecutive days.

The annual inflation rate in the U.S. rose to 2.7% in June, up from 2.4% in May, while the core inflation rate increased to 2.9% (compared to 2.8% in May). The rebound in inflation has dampened bets on a rate cut by The Federal Reserve (FED) in September, putting pressure on risk assets. The CME's FedWatch tool indicates that the likelihood of a rate cut in September dropped from 62.6% on July 14 to 54.9% on July 15.

However, driven by the liquidity trends of the Bitcoin Spot ETF market in the United States, Bitcoin rebounded from an intraday low of 115,701 USD.

The U.S. Bitcoin Spot ETF market is expected to see inflows for nine consecutive days

On July 14, the net inflow to the U.S. Bitcoin Spot ETF market reached a total of 297.4 million USD, with the total inflow for July reaching 3.6823 billion USD. The capital inflow situation on July 15 showed mixed results, but the inflow record for BlackRock iShares Bitcoin Spot ETF (IBIT) may continue for up to nine trading days. According to Farside Investors, the main capital inflow trends on July 15 included:

· VanEck Bitcoin Spot ETF (HODL) reported a net inflow of $19 million

· Grayscale Bitcoin Trust net inflow of 18.6 million USD

· Grayscale Bitcoin Spot ETF (GBTC) net outflow of 41.2 million USD

· Fidelity Research Origin Bitcoin Spot ETF (FBTC) had a net outflow of 22.9 million dollars

With the release of flow data for the iShares Bitcoin Trust and Invesco Galaxy Bitcoin ETF (BTCO), the total outflow for U.S. Bitcoin Spot ETFs has reached $13.2 million.

The market information platform Santiment commented on traffic trends, stating: "As the trading price of the leading crypto asset Bitcoin ETF continues to break new highs, a significant amount of capital is flowing into these ETFs. Since June 9, the total net inflow into these ETFs has reached $7.78 billion, which is $353.8 million daily. With the continuous influx of on-chain whales, this fiat capital flowing into the ETFs is driving the price of Bitcoin to new historical highs."

Bitcoin Price Analysis

FXEmpire analyst Bob Mason stated that the recent price outlook for Bitcoin depends on several key driving factors, including legislative votes related to encryption, U.S. producer prices, and Spot ETF liquidity trends. Possible scenarios:

Bearish scenario: Legislative hurdles, rising producer price index in the United States, The Federal Reserve (FED) sending strong signals, and outflow of ETF funds. The combined effect of these factors could push Bitcoin towards $115,000 and may touch the 50-day exponential moving average (EMA).

Bullish Scenario: Bipartisan support for cryptocurrency legislation, softening of the U.S. producer price index, dovish hints from The Federal Reserve (FED), and inflows into ETFs. In these scenarios, Bitcoin could reach a historical high of $122,057.

(Source: Trading View)