Bitcoin ETFs See Biggest Drop in Two Weeks: Markets Under Pressure After Fed Rate Cut

Bitcoin ETFs See Biggest Drop in Two Weeks: Markets Under Pressure After Fed Rate Cut

Today brought significant turmoil to US markets and the cryptocurrency scene. Following the Federal Reserve’s decision to cut interest rates by 25 basis points, there was a significant outflow of funds from Bitcoin ETFs, reaching a record $470 million in the past two weeks.

Spot ETFs in particular saw significant outflows, with their prices briefly dropping to $108,000 before recovering. Fidelity (FBTC) and ARK Invest (ARKB) reported the biggest losses with $164 million and $143 million, respectively. BlackRock’s IBIT ETF saw an outflow of $88 million, while Grayscale’s GBTC lost $65 million. Bitwise (BITB) ETF saw a smaller loss of $6 million.

Despite the fluctuations, the ETF still holds over 1.5 million Bitcoins worth about $169 billion, which represents about 7.3% of the total supply.

The price of Bitcoin fluctuates between $108,201 and $113,567, although the Fed has cut rates, the market reaction is contradictory. However, after the meeting between US President Donald Trump and Chinese leader Xi Jinping and discussions on trade tensions, Bitcoin strengthened briefly.

Analysts point out that despite the outflows from ETFs, the cryptocurrency remains significantly represented in investor portfolios. Funds such as Fidelity, BlackRock and Grayscale hold key holdings, with BlackRock, for example, managing over 800,000 Bitcoins.

However, even market pioneers are not losing optimism. Michael Saylor, chairman of MicroStrategy, believes that Bitcoin can reach $150,000 by the end of 2025, and expresses confidence in the long-term positive trajectory of the cryptocurrency.

The conclusion is clear: markets remain volatile, but interest in Bitcoin and its ETF remains strong. The situation will continue to be closely watched as prices and cash flow in this dynamic industry evolve.

*This is not investment advice.

The Coingarage Team