Market Turmoil: Bitcoin Plummets Amid ETF Outflows and Powell’s Comments on Interest Rates

Bitcoin Drops as ETF Outflows Hit $680M Amid Powell’s Federal Reserve Comments

The cryptocurrency market has been rocked by a significant outflow of funds from the industry’s major exchange-traded funds (ETFs), with a staggering $680 million being withdrawn on December 19. This move comes in the wake of Jerome Powell, the Chairman of the Federal Reserve, offering his thoughts on inflation and interest rates.

Despite the massive net outflows, the cumulative total for all ETFs still stood at an impressive $36.33 billion, highlighting the long-term commitment of investors to the crypto space.

The Fidelity and Grayscale ETFs bore the brunt of the outflows, with both experiencing significant withdrawals of $208.5 million and $188.6 million respectively. These two funds had previously shown strong growth in investor interest.

Powell’s comments during the Federal Reserve meeting sparked a rapid downturn in the cryptocurrency market, as investors became wary of potential future actions taken by the central bank to curb inflation. The Fed chief emphasized concerns over rising prices and hinted that there may be limited room for rate cuts in 2025.

The resulting price drop for Bitcoin has been substantial, with the world’s most valuable digital currency falling below $97K.

Source: cryptonewsland.com