Investing.com-- Bitcoin fell on Monday as market participants weighed the implications of a key U.S. inflation report and braced for upcoming remarks from Federal Reserve officials.

The world’s largest cryptocurrency fell 1.3% to $96,368.1 by 01:30  ET (6:30 GMT).

Bitcoin slips as investors digest US inflation data, await Fed commentary

The cryptocurrency, which has been grappling with volatility in recent weeks, faced renewed pressure as investors adopted a cautious stance amid concerns over monetary policy tightening and its potential impact on risk assets.

The latest U.S. Consumer Price Index (CPI) data for January, released last week, showed inflation persisting above the Federal Reserve's 2% target, fueling speculation that the central bank may maintain a hawkish stance for longer than anticipated.

This has cast a shadow over Bitcoin and other risk-sensitive assets, as higher interest rates tend to dampen investor appetite for speculative investments.

Market participants are now closely monitoring comments from Federal Reserve officials, scheduled to speak later in the day, for clues on the future trajectory of monetary policy.

Any signals of higher-for-longer rates or a delay in rate cuts could further weigh on Bitcoin, which has historically struggled in high-interest-rate environments.

The cryptocurrency remains within a tight range, reflecting the market's indecision as it awaits clearer direction from macroeconomic developments.

Adding to the bearish sentiment, reports have shown that crypto ETFs have experienced notable outflows in recent days.

Analysts attribute this trend to a combination of factors, including profit-taking by investors following Bitcoin's strong rally earlier this year, regulatory uncertainties, and a broader risk-off mood in traditional markets.

The outflows suggest that some institutional and retail investors are reducing their exposure to cryptocurrencies amid the uncertain macroeconomic backdrop.

Crypto price today: most altcoins drop tracking Bitcoin; Cardano gains

Most altcoins were also lower, in line with Bitcoin’s movement amid a broader risk-off mood.

World no.2 crypto Ether fell 1.1%  to $2,680.19 on Monday.

World no. 3 crypto XRP dropped 4.1% to $2.6724.

Solana declined 6.2% and Investing.com Polygon Index traded 2% higher, while Cardano jumped 3.1%.

Among meme tokens, Dogecoin fell 3.2%, while $TRUMP slipped 5.7%.