Bitcoin Holds Above $76,500 as ETF Outflows Continue Ahead of Key Fed Meeting

Bitcoin trading above $76,500 on Wednesday as investors awaited a major policy decision from the Federal Reserve, widely expected to keep interest rates unchanged. The market focus, however, has shifted toward whether Fed Chair Jerome Powell signals a continuation of the “higher-for-longer” interest rate regime during what could be his final meeting before a leadership transition to Kevin Warsh.

Bitcoin traded around $76,500–$77,479, fluctuating between $75,689 and $77,837 ahead of the FOMC announcement. Analysts at QCP Capital said markets have already priced in a rate pause, with Powell’s tone expected to determine direction. Bitunix analyst Chen Dean warned that renewed tightening signals could pressure crypto and technology stocks by reducing liquidity.

Institutional flows reflected caution, with U.S. spot bitcoin ETFs recording $89.68 million in net outflows on April 28. BlackRock’s IBIT ETF led losses with $112 million in outflows, while spot ether ETFs saw an additional $21.80 million withdrawn. Onchain data from CryptoQuant showed exchange inflows rising to 9,905 BTC on April 27, the highest in 30 days, pushing reserves from 2.666 million BTC to 2.677 million BTC by April 28. Analysts warned Bitcoin could retest the $74,000–$75,000 support zone if inflows remain elevated.

Liquidity conditions remain thin, with March recording a 12-month low in spot and perpetual trading volumes. Paul Howard said this environment increases the chance of sharp moves following the Fed decision, though he expects Bitcoin to remain range-bound between $72,000 and $80,000 in the near term.