Bitcoin ETFs have witnessed nearly $500 million in outflows, reflecting a resurgence of apprehension in the cryptocurrency market. On Wednesday, Bitcoin was valued at $75,900 following the Federal Reserve’s recent rate decision, which unsettled crypto investors and triggered three consecutive days of withdrawals, amounting to over $490 million. Leading the exit were Fidelity’s FBTC, which saw a $191 million drop, and BlackRock’s IBIT, the largest spot Bitcoin ETF, facing nearly $167 million in outflows. During this tumultuous week, the heaviest selling occurred on Monday with $263 million withdrawn. The outflows followed a strong inflow period of nine days that saw transactions exceeding $2 billion. The Fed maintained its interest rate between 3.50% and 3.75%, with Chair Jerome Powell giving no indication of impending cuts, creating further pressure on risk assets including Bitcoin. As geopolitical tensions rise, especially between the US and Iran, market sentiment is shifting toward caution, highlighted by a retreat into the ‘Fear’ zone in the Crypto Fear and Greed Index. Bitcoin has recently pulled back from a high near $80,000, with the focus now shifting to test support around the $75,000 mark as outflows persist.
