The recent Federal Reserve rate cut caused strong turbulence. The decision triggered massive net outflows of $470 million from U.S. spot Bitcoin ETFs in a single session. According to data from Farside Investors, Fidelity’s FBTC led the withdrawals with $164 million, followed by ARK Invest’s ARKB with $143 million and BlackRock’s IBIT with $88 million. The Fed’s decision, the second consecutive one, failed to boost risk appetite and caused Bitcoin to briefly drop to $109,000.
These Bitcoin ETF outflows offset the $350 million in inflows recorded at the beginning of the week, reducing total net flows to $61 billion. Investor uncertainty persists amid inflation concerns, despite the monetary easing. The assets under management (AUM) of BTC ETFs now stand near $149 billion, equivalent to 6.7% of Bitcoin’s market capitalization. Markets managed to stabilize following reports of a meeting between Presidents Donald Trump and Xi Jinping.
Despite the daily volatility, long-term optimism remains. MicroStrategy’s Michael Saylor reiterated his forecast that Bitcoin could reach $150,000 by the end of 2025. Spot ETFs continue to be a dominant force, collectively managing over 1.5 million BTC. Investors will be watching to see if these outflows represent a one-time reaction to the Fed or the beginning of greater risk aversion in the market.
Source: https://farside.co.uk/btc/
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