The post What’s next for Bitcoin prices as inflation cools and demand hesitates? appeared on BitcoinEthereumNews.com.

Markets went into the CPI release expecting softer inflation because prior prints were easing and financial conditions were loosening. The data met that view. Headline CPI slowed to 2.4% and core to 2.5%, which lowered real-yield pressure and lifted equity risk appetite. Bitcoin [BTC] did not mirror that follow-through because the marginal buyer did not reappear in the U.S. spot. The Coinbase Premium Index stayed negative for months, often between –0.02% and –0.08%, meaning Coinbase traded below offshore venues. Source: CryptoQuant That divergence suggests arbitrage selling into U.S. strength, ETF flow inconsistency, and a preference for derivatives over spot. Premiums failed to hold positive during the $100,000–$120,000 advances because buyers chased breakouts late, then faded rallies as liquidity thinned. This kept the upside momentum fragile and increased drawdown sensitivity. As BTC slid toward $68,900, the premium near -0.06% showed U.S. participants reacting to price moves rather than leading them. This situation improves only if premiums turn persistently positive and ETF inflows become consecutive, confirming spot-led absorption. Until then, Bitcoin remains in recovery validation rather than a confirmed uptrend. Spot demand weakness extends into ETF flows In the current cycle, regulated spot Bitcoin ETFs have emerged as the primary transmission mechanism for institutional capital. However, their behavior in February 2026 reveals clear hesitation rather than conviction. Institutional participation reflected the same hesitation already visible in U.S. spot demand. Spot ETF flows turned inconsistent despite supportive macro signals. By the 13th of February, net outflows reached $410 million, extending a two-day total near $686 million. Redemptions across major funds showed investors were reducing exposure rather than expanding it. Source: Farside The intended outcome had been steady institutional accumulation following CPI relief and stronger equity sentiment. Instead, allocations remained tactical as investors used rallies to re-balance risk. At the same time, Exchange Netflow…

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Filed under: News - @ February 14, 2026 7:11 pm