Bitcoin ETFs lose $1.7B in a week amid fears of Fed rate hikes and weak crypto market.
Investors withdrew $4.7 billion from US spot Bitcoin ETFs since mid-May, driven by a falling Bitcoin price and concerns over Federal Reserve rate hikes. Bitcoin dropped from above $79,000 to below $60,000, with $1.7 billion in ETF outflows in the past week alone, led by BlackRock's IBIT. The selloff followed strong US jobs data that reduced expectations for near-term Fed rate cuts, as new Fed Chair Kevin Warsh signals a possible hawkish stance on inflation. Traders now expect at least one rate hike by year-end, adding pressure on the digital asset market.
Investors withdrew $4.7 billion from US spot Bitcoin ETFs since mid-May, driven by a falling Bitcoin price and concerns over Federal Reserve rate hikes. Bitcoin dropped from above $79,000 to below $60,000, with $1.7 billion in ETF outflows in the past week alone, led by BlackRock's IBIT. The selloff followed strong US jobs data that reduced expectations for near-term Fed rate cuts, as new Fed Chair Kevin Warsh signals a possible hawkish stance on inflation. Traders now expect at least one rate hike by year-end, adding pressure on the digital asset market.
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