Bitcoin and Ether ETFs See $111 Million Outflows After Fed Ends Rate-Cut Hopes

US spot bitcoin and ether exchange-traded funds recorded combined outflows of nearly $111 million on Wednesday as investors reacted to the Federal Reserve’s tougher stance on interest rates.

According to data, spot bitcoin ETFs lost around $82 million, while ether ETFs saw another $29 million leave the market. The selling pressure affected nearly all major funds, including BlackRock’s IBIT and ARKB, which both posted significant outflows.

The shift came after Federal Reserve Chair Kevin Warsh kept rates unchanged between 3.50% and 3.75% but signaled that inflation remains a bigger concern than economic slowdown. Updated projections from the Fed also reduced expectations for future rate cuts and increased the possibility of another rate hike later this year.

Bitcoin Price Holds Steady Despite Weak ETF Demand

Bitcoin traded near $63,800 following the announcement, while the total crypto market value stayed close to $2.26 trillion. Analysts said the broader recovery rally has slowed as institutional investors become more cautious.

At the same time, large bitcoin holders continued accumulating during the market dip. Data showed wallets holding at least 1,000 BTC increased their combined holdings to about 7.17 million coins, the highest level since March.

Meanwhile, options traders on Deribit placed major bearish bets around the $62,000 bitcoin price level ahead of the weekend, signaling concerns about short-term downside risk in the crypto market.