Bitcoin Updates: Uncertainty Over Fed Rate Cuts Triggers Crypto Market Selloff, Bitcoin Drops by 5%
- Fed Chair Powell's hawkish remarks triggered a 5% Bitcoin drop below $110,000 amid reduced December rate cut odds to 69%. - Bitcoin ETFs saw $470.7M net outflows as FBTC and ARKB led redemptions, while Ethereum ETFs lost $81.44M. - Geopolitical tensions and government shutdown uncertainty amplified crypto volatility, with BlackRock's ETHA remaining the sole inflow ETF. - Despite 7.3% Bitcoin supply in ETFs, market caution persists as Saylor's $150k/2025 forecast contrasts with traders' risk-off positioni
Bitcoin slipped below $110,000 on Wednesday after Federal Reserve Chair Jerome Powell's hawkish tone during the post-meeting press conference unsettled investors, as reported by
The downturn also hit exchange-traded funds (ETFs), with
Historically, ETF inflows have indicated rising demand, but the current market tells a different story. Glassnode pointed out that the recent net outflows coincide with market lows and a drop in sentiment, according to
Geopolitical risks further unsettled markets. The U.S.-China trade summit between Donald Trump and Xi Jinping ended with assurances of a "trade deal soon," but Asian markets were mixed, according to
The Fed's unclear policy direction and global tensions have created a choppy market environment. Although Bitcoin ETFs still account for 7.3% of total supply, cumulative net inflows have fallen to $61 billion, and assets under management now total $149 billion, according to
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