Bitcoin ETF Inflows Remain Weak as Fed Decision Keeps Interest Rates Unchanged
Despite the recent Federal Open Market Committee’s decision to keep interest rates unchanged, inflows into U.S. spot Bitcoin ETFs continue to be lackluster for the second consecutive day. Data from SoSoValue reveals that on Jan. 29, the 12 spot Bitcoin ETFs recorded $92.09 million in inflows, with the majority coming from Grayscale’s mini Bitcoin Trust and Fidelity’s FBTC. However, BlackRock’s IBIT and Bitwise’s BITB experienced outflows, signaling a mixed sentiment among investors.
The total trading volume for investment products reached $3 billion on Jan. 29, with total net assets amounting to $121.36 billion, representing 5.88% of the total Bitcoin supply.
Following the Fed’s decision to keep interest rates steady at 4.25% to 4.50%, Bitcoin saw a 3.1% increase in value, reaching $105,366 at press time. Despite the dovish stance from the Fed, investors are waiting for confirmation of potential rate cuts in the future.
“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,” said Matt Mena, a crypto research strategist at 21Shares.
Market participants are now looking towards the upcoming Personal Consumption Expenditures (PCE) report, set to be released on Friday, as the next significant catalyst for risk assets, including Bitcoin. Until clearer signals emerge, Bitcoin is expected to consolidate within its current range, with $105k as a critical breakout level and $108k as the next major upside target if Friday’s data favors risk assets.