Bitcoin ETFs See $200M Net Outflows in Fed, CPI Jitters

Bitcoin ETFs have experienced a net outflow of $200 million as concerns over the Federal Reserve’s monetary policy decision and the U.S. Consumer Price Index (CPI) weigh on the market. This marks the second consecutive day of outflows for U.S.-listed spot bitcoin ETFs, with Grayscale’s GBTC being the main driver behind the outflows. The recent sell-off in bitcoin, which briefly dropped to $66,200 before recovering, has contributed to the outflow. Other ETFs, including ARKB, BITB, FBTC, and HODL, also saw outflows ranging from $7 million to $56 million. Traders attribute the outflows to derisking ahead of the CPI reading and the conclusion of the Federal Open Market Committee (FOMC) meeting. However, despite the short-term concerns, there is still a bullish long-term outlook for bitcoin, with potential positive events such as the launch of an ETH spot ETF and the competition between Biden and Trump to capture the crypto vote. Additionally, crypto prices may be impacted by Treasury Secretary Janet Yellen’s upcoming speech.