|
Getting your Trinity Audio player ready...
|
- Bitcoin ETFs saw $363M outflows; Ether ETFs $76M.
- Fed Chair Powell’s speech is key for crypto market direction.
- Rising Treasury yields and strong US dollar fuel risk-off sentiment.
Stay ahead with real-time updates and insights—Join our Telegram channel!
The crypto market is showing clear signs of caution as institutional investors pull back from key digital assets. According to Farside Investors, spot Bitcoin ETFs recorded $363.1 million in net outflows on September 23, marking the largest exit this month. Fidelity’s FBTC led with $276.7 million in outflows, followed by Ark 21Shares’ ARKB at $52.3 million and Grayscale’s GBTC at $24.6 million. Even VanEck’s HODL saw $9.5 million withdrawn, pushing total assets under management below $150 billion.
Ether ETFs also faced pressure, with $76 million in net outflows—the first after two consecutive inflows. Fidelity’s FETH led the selloff with $33.1 million, Bitwise’s ETHW saw $22.3 million, and BlackRock’s ETHA recorded $15.1 million in outflows. These moves indicate a clear risk-off sentiment as institutional investors appear hesitant to hold crypto amid uncertain macroeconomic signals.
Fed Signals and Market Anticipation
All eyes are now on US Federal Reserve Chair Jerome Powell, who is scheduled to speak today. Recent remarks by Fed officials have shown divided opinions on interest rate cuts, with newly appointed Governor Stephen Miran advocating a 50 bps reduction. Powell has emphasized a cautious approach, stating the Fed has no rush to cut rates aggressively and plans further gradual reductions through 2025 and 2026.
Rising US dollar strength and Treasury yields have also contributed to market caution. The U.S. Dollar Index stands at 97.40, while the 10-year Treasury yield hovers near 4.15%. Market watchers are concerned that continued dollar strength and elevated yields could pressure crypto prices further.
Also Read: Thailand’s SEC Ranks XRP #1 Again — Can It Stay Ahead of Bitcoin?
Market Outlook: Caution Prevails
Bitcoin trades just above $113K, moving sideways with expectations of potential dips below $110K. Ether is hovering near the $4,200 support level. Analysts suggest that unless the Fed signals more aggressive easing, crypto could face further short-term weakness. The combination of ETF outflows, cautious institutional behavior, and macroeconomic uncertainty is creating a delicate environment for digital assets.
Investors are taking a defensive stance ahead of Powell’s speech, reflecting broader market anxiety. ETF outflows from Bitcoin and Ether, combined with rising Treasury yields and a firm US dollar, suggest that risk-off behavior could continue until clearer Fed guidance emerges.
Stay ahead with real-time updates and insights—Join our Telegram channel!
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
