BTC ETFs See $470M in Outflows Despite Fed Rate Cuts and Trump’s Trade Comments
On Wednesday, U.S. spot saw a giant swing, with $470.7 million in net outflows. This rapidly ended a four-day run of net inflows. The significant shift in monetary policy co-occurred with the most recent decline in U.S. Federal Reserve interest rates.
Additionally, the comments from former President altered the market’s perception of U.S. trade policies. Investors viewmed eager to lock in profits and rebalance their portfolios ahead of a closely watched speech by Fed Chair Jerome Powell, which added another layer of caution to the already volatile crypto market.
12 BTC ETFs all declined simultaneously, particularly later than accumulating a total of $462.7 million in inflows over the previous four days. Fidelity’s FBTC and ARK 21Shares’ ARKB led the exodus, recording outflows of $164.36 million and $143.8 million, respectively.
BlackRock’s IBIT and Grayscale’s GBTC, on the other hand, lost $88 million and $65 million, respectively. No spot ETF products drew in any money on that day.
The Crypto Market Maintains Its Volatility
The day’s trading volume jumped to $7.07 billion from $4.18 billion in the previous session. This suggests that there was increased market activity following the Fed’s rate decision and a significant political discussion.
Although everyone expected the Federal Reserve to lower rates by 25 basis points, the values of (BTC) and ETH (ETH) fell by approximately 3% in 24 hours, as traders decided to “trade the news.”
Fed Chair Jerome Powell didn’t give investors any reassurance when he that further rate reductions are still uncertain. He stressed that additional cuts would depend on the economy’s performance, saying, “It is not a foregone conclusion that the policy rate will be cut again at the December meeting.” Not at all; policy is not on a predetermined path.
At the identical time, the broader cryptocurrency market experienced a surge in liquidations. showed that overall crypto liquidations rose 75% to $594 million, which wiped out more than 146,000 dealers. BTC and ETH lost the most money.
The Long-Term Outlook is Still Positive
Despite the significant short-term volatility, some analysts remain optimistic about the future of BTC and other digital assets. Andrew Forson from DeFi Technologies believes that strong corporate earnings make people more willing to take risks. Matt Mena from thinks that BTC will reach new all-time highs before the end of the year.
Mena says that sound policies, a significant amount of money in the market, and a better mood might all assist BTC break through its $124,000 high and conclude the year in the $130,000–$150,000 region, while aims for $5,000–$6,000.
Recent ETF outflows indicate that investors are reevaluating their positions and exercising caution, but the overall market could still be a favorable environment for bullish momentum to return in the coming months.
