Crypto market awaits key cues from US Fed Chair Jerome Powell’s speech today for market direction. Outflows from Bitcoin and Ether ETFs indicated bearish sentiment as recent speeches by Fed officials highlighted the mixed opinions on further rate cuts.
Spot Bitcoin and Ether ETFs Record Outflows
According to Farside Investors data on September 23, spot Bitcoin ETFs recorded $363.1 million in net outflows. This marks the highest outflow this month and the first in the last two days.
Fidelity’s FBTC led with $276.7 million in outflows, followed by $52.3 million from Ark 21Shares’ ARKB and $24.6 million from Grayscale’s GBTC. Also, VanEck’s HODL saw $9.5 million in outflows. This caused total assets under management (AuM) to drop under $150 billion again.
In addition, spot Ether ETFs saw $76 million in new outflows, the first selloff after two consecutive inflows. Fidelity’s FETH led with $33.1 million in outflows, followed by $22.3 million from Bitwise’s ETHW and $15.1 million from BlackRock’s ETHA.
The outflows from both Bitcoin and Ether ETFs signal risk-off sentiment among institutional investors. While gold prices continue to reach highs after a 25 bps Fed rate cut, investors are selling Bitcoin and other crypto assets. Investors could bet on more selloff after the massive crypto market crash on Monday.
US Fed Chair Jerome Powell’s Speech Today
Global stock and crypto markets are waiting for Fed Chair Jerome Powell’s speech, as the recent speeches by Fed officials indicated divided opinions on further rate cuts. Newly appointed Fed Governor Stephen Miran is the only one favoring a 50 bps cut.
During his FOMC press conference, the Fed Chair said they are in no rush to cut interest rates more quickly and claimed that they were right to wait until now to resume Fed rate cuts. The Fed expects to lower rates by another 50 bps by the end of 2025, and a quarter point in 2026.
Notably, a rise in the US dollar and treasury yields prompted investors to turn more cautious. At the time of writing, the U.S. Dollar Index (DXY) was 97.40, holding firm ahead of the speeches and PCE inflation data this week. The U.S. 10-year Treasury yield holds near 4.15%, after rising quickly for the last few sessions.
Meanwhile, JPMorgan CEO Jamie Dimon warned that the Fed will not cut rates unless inflation drops. This triggered a negative sentiment among investors as the JPMorgan CEO hinted at a weakening U.S. economy.
Bitcoin is trading above $113K, moving sideways on expectations of a deeper fall below $110K. The 24-hour low and high were $111,591 and $113,507, respectively. Meanwhile, ETH price moves near the $4,200 support level.