Bitcoin ETFs end inflow run with $470.7m in outflows
U.S. spot Bitcoin exchange-traded funds (ETFs) experienced net outflows on Wednesday as investors took profits and repositioned themselves ahead of Federal Reserve Chair Jerome Powell’s speech.
According to data from SoSovalue, the 12 spot Bitcoin ETFs recorded $470.71 million in net outflows on October 29, ending a streak of four consecutive days of inflows that had brought approximately $462.7 million into these funds. Fidelity’s FBTC and ARK 21Share’s ARKB led the outflows, with $164.36 million and $143.8 million leaving the funds, respectively. BlackRock’s IBIT and Grayscale’s GBTC funds also shed $88 million and $65 million. None of the BTC funds saw any inflows on the day.
Trading volume for these investment vehicles stood at $7.07 billion, significantly higher than the $4.18 billion recorded the previous day.
Meanwhile, Ethereum-focused ETFs also resumed outflows, with $81.44 million flowing out following two straight days of net inflows.
The outflows from both Ethereum and Bitcoin ETFs likely reflect investors booking profits and adopting a more cautious stance ahead of Fed Chair Jerome Powell’s press statement after the conclusion of the Federal Open Market Committee (FOMC) meeting.
Although the Fed’s 25 basis points rate cut met analysts’ expectations, both Bitcoin (BTC) and Ethereum (ETH) prices slipped as traders engaged in a classic “buy the rumor, sell the news” reaction. Powell dampened hopes for another rate cut this year, which deflated optimism that had built up in recent weeks.
“A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it, policy is not on a preset course,” Powell told reporters. He added that upcoming decisions would heavily depend on incoming economic data.
At the time of writing, both BTC and ETH were down nearly 3% over the past 24 hours, trading around $110,000 and $3,910, respectively.
Another key factor contributing to losses was a significant surge in liquidations across the broader crypto market. Data from CoinGlass showed crypto liquidations jumped 75% to $594 million on Wednesday, with over 146,000 traders liquidated. Bitcoin and Ethereum accounted for the largest portions of these losses.
Commenting on the broader macroeconomic outlook, Andrew Forson, president of DeFi Technologies, told Crypto.news that as earnings season unfolds, market sentiment will likely remain reactive to corporate results and forward guidance.
He added: “While strong earnings could reinforce the market’s confidence in a recovery narrative, disappointing numbers might reveal the uneven toll of current economic conditions.”
“Overall, a lower-rate environment tends to be constructive for both equities and digital assets, and we view this backdrop as broadly positive for crypto as investors look toward alternative and growth-oriented assets,” Forson said.
Despite recent volatility, some analysts remain bullish on the longer-term outlook for cryptocurrencies. Among them is Matt Mena, Crypto Research Strategist at 21Shares, who believes Bitcoin could reach fresh all-time highs by year-end.
Mena told Crypto.news that “policy tailwinds, liquidity rotation, and positive sentiment converge” to set the stage for Bitcoin to decisively surpass its previous peak of $124,000 and potentially close the year in the $130,000 to $150,000 range. He also projects Ethereum trading between $5,000 and $6,000.
With cautious short-term sentiment but optimistic longer-term prospects, investors continue to watch closely as the crypto market navigates evolving economic conditions and central bank policies.
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