Bitcoin ETF Inflows Reverse as Fed’s Hawkish Outlook Triggers Market Caution

Bitcoin ETF Inflows Reverse as Fed’s Hawkish Outlook Triggers Market Caution

Source: CoinDesk

Published:08:47 UTC

BTC Price:$117158

#btc #federalreserve #etf

Analysis

Price Impact

Med

Bitcoin etf inflows reversed after the federal reserve's hawkish outlook, causing market caution. this indicates that macroeconomic factors and central bank policies significantly influence bitcoin's investment flows and price.

Trustworthiness

High

The information is sourced from coindesk, a reputable news outlet in the cryptocurrency industry, and includes specific data points and references to federal reserve policies.

Price Direction

Bearish

The reversal of bitcoin etf inflows suggests reduced buying pressure, while the fed's hawkish stance typically leads to a pullback in risk assets, potentially leading to a short-term bearish trend.

Time Effect

Short

The immediate reaction to the fed's announcement and the subsequent etf outflows suggest a short-term impact. however, the long-term effect will depend on future economic data and policy adjustments.

Original Article:

Article Content:

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By Francisco Rodrigues | Edited by Sheldon Reback Sep 18, 2025, 8:47 a.m. (Midjourney/Modified by CoinDesk) What to know : Spot bitcoin ETFs experienced their first daily outflows in over a week, losing a net $51.28 million after the Federal Reserve’s more-cautious-than-expected outlook. The Fed lowered its benchmark rate by 25 basis points, as forecast, but signaled fewer future cuts than anticipated, causing market uncertainty. Ethereum ETFs saw redemptions for the second consecutive day, losing $1.89 million. Spot bitcoin BTC $ 117,240.91 ETFs saw their first daily outflows in over a week on Wednesday, shedding a net $51.28 million, as investors reacted to the Federal Reserve’s unexpectedly cautious outlook on future policy. The outflow broke a seven-day streak that had brought in nearly $3 billion. Assets under management remain above $150 billion, according to SoSoValue data, but the tone in markets shifted after Fed Chair Jerome Powell emphasized economic uncertainty and signaled fewer cuts ahead than traders had hoped. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . As expected, the Fed lowered its benchmark rate by 25 basis points, bringing it to a range of 4.00% to 4.25%, in its first cut of the year. But the real surprise came from the central bank's updated projections, which indicated just two more cuts in 2025 and fewer in 2026 than markets had priced in. In a cautious press conference, Powell warned of “elevated” inflation and rising “downside risks” to employment, striking a tone that left traders wary. Markets interpreted the move as a hawkish cut, triggering a mild pullback in risk assets. Ethereum ETFs also saw redemptions, with net outflows for a second straight day. Withdrawals amounted to $1.89 million following the exit of $61.7 million the day before. Cryptocurrency prices edged higher. Bitcoin rose around 0.3% in the last 24 hours while ether moved up 1.7%. The broader CoinDesk 20 ( CD20 ) index rose 2%. Federal Reserve Spot bitcoin etf Bitcoin ETF More For You BTC, XRP, SOL, DOGE Resume Slow Grind Higher After Fed, Dollar Index Is Resilient Too By Omkar Godbole , AI Boost | Edited by Parikshit Mishra 2 hours ago Dovish Fed favors new all-time highs in major tokens, but the dollar resilience may prove costly. What to know : Bitcoin reached its highest level since Aug. 17, lifting the broader market higher following the Fed rate cut. One analyst expect BTC and ETH to hit new all time highs. The dollar index, however, has bounced back despite dovish Fed projections. Read full story Latest Crypto News BTC, XRP, SOL, DOGE Resume Slow Grind Higher After Fed, Dollar Index Is Resilient Too 2 hours ago Ripple, Franklin Templeton and DBS to Offer Token Lending and Trading 3 hours ago Asia Morning Briefing: Bittensor’s dTAO Shows a Retail Path to AI Exposure Beyond Robinhood’s SPVs 9 hours ago SEC Makes Spot Crypto ETF Listing Process Easier, Approves Grayscale's Large-Cap Crypto Fund 9 hours ago First U.S. XRP ETF Launches Sept. 18, CME to List Options on XRP Futures Oct. 13 11 hours ago Crypto Platform Bullish's Second-Quarter Earnings Beats Wall Street's Estimates 11 hours ago Top Stories BTC, XRP, SOL, DOGE Resume Slow Grind Higher After Fed, Dollar Index Is Resilient Too 2 hours ago SEC Makes Spot Crypto ETF Listing Process Easier, Approves Grayscale's Large-Cap Crypto Fund 9 hours ago Ripple, Franklin Templeton and DBS to Offer Token Lending and Trading 3 hours ago First U.S. XRP ETF Launches Sept. 18, CME to List Options on XRP Futures Oct. 13 11 hours ago Asia Morning Briefing: Bittensor’s dTAO Shows a Retail Path to AI Exposure Beyond Robinhood’s SPVs 9 hours ago Crypto Platform Bullish's Second-Quarter Earnings Beats Wall Street's Estimates 11 hours ago In this article BTC BTC $ 117,240.91 ◢ 0.54 % About About Us Masthead Careers Blog Investor Relations Contact Contact Us Accessiblility Advertise Sitemap System status News Markets Finance Tech Policy Focus Videos CoinDesk Daily Editors Picks Shorts Spotlight Podcasts CoinDesk Podcast Network Markets Daily Gen C Unchained with Laura Shin The Mining Pod Cryptocurrencies Prices Bitcoin (BTC) Ethereum (ETH) XRP Solana (SOL) Data Trade Data Deriviatives OrderBook Data On-Chain Data API Data Catalogue AI & Machine Learning Indices Mult-Asset Indices Reference Rates Strategies & Services Insights & Announcements Documentation & Governance Events CoinDesk: Policy & Regulation Consensus Hong Kong Consensus Miami Webinars Sponsored Thought Leadership Press Release MEXC Phemex Stellar Research Research Reports Ethics Privacy Terms of Use Cookie Settings Do Not Sell My Info X icon © 2025 CoinDesk, Inc. 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