Bitcoin ETF Inflows Remain Weak Despite Fed’s Interest Rate Decision

Investor sentiment in the cryptocurrency market remains cautious, as inflows into U.S. spot Bitcoin ETFs continue to be weak for the second consecutive day. This comes after the Federal Open Market Committee’s decision to keep interest rates unchanged, which has left investors uncertain about the market’s direction.

Weak Inflow Trend Continues

According to recent data, the 12 spot Bitcoin ETFs recorded $92.09 million in inflows on January 29, with the majority of inflows coming from Grayscale’s mini Bitcoin Trust, which drew in $106.23 million, followed by Fidelity’s FBTC with $18.2 million in inflows. Meanwhile, BlackRock’s IBIT experienced $92.09 million in outflows, ending its 9-day inflow streak.

Other notable Bitcoin ETFs, such as Bitwise’s BITB, reported a net outflow of $3.96 million on the day. The remaining eight BTC ETFs saw no significant inflows or outflows.

Market Performance and Outlook

The total trading volume for investment products stood at $3 billion on January 29, while their total net assets amounted to $121.36 billion, accounting for 5.88% of the total Bitcoin supply. Despite the weak inflow trend, Bitcoin rose 3.1% over the past day, exchanging hands at $105,366 at press time.

“While [yesterday’s] Fed decision didn’t shake the market, the bigger picture remains clear—investors are waiting for confirmation that rate cuts are on the horizon,”

According to Matt Mena, crypto research strategist at 21Shares, market participants are now shifting their focus to the upcoming Personal Consumption Expenditures (PCE) report, set to be revealed this Friday, which is anticipated to be the next significant catalyst for risk assets, including Bitcoin.

Tips for Investors

Here are some key takeaways for investors:

  • Be cautious of market volatility and keep an eye on upcoming economic reports.
  • Monitor Bitcoin’s price movement and consolidation within its current range.
  • Keep an eye on the $105k breakout level and $108k as the next major upside target if Friday’s data favors risk assets.

Stay up-to-date with the latest news and trends in the cryptocurrency market by following Global Crypto News.

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