Bitcoin ETFs See $470M Withdrawals Amid Federal Reserve Rate Decision and Trade Policy Shifts

Spot Bitcoin exchange-traded funds (ETFs) experienced significant outflows totaling $470 million, marking their largest single-day withdrawal in over two weeks. This movement coincided with the Federal Reserve’s decision to lower interest rates, which introduced heightened volatility across U.S. financial markets. The rate cut, aimed at addressing economic conditions, prompted investors to reassess risk exposures, leading to a notable shift away from cryptocurrency-linked investment products. Concurrently, discussions on trade policies by former President Donald Trump added to market uncertainty, influencing investor sentiment and contributing to the erratic trading session. Analysts note that such outflows reflect broader caution as macroeconomic factors evolve, though Bitcoin’s long-term adoption narrative remains intact. The interplay between monetary policy adjustments and geopolitical commentary continues to shape capital flows in digital asset markets, underscoring the need for vigilance among participants.