Fed Aftermath Bitcoin Drop: Below 110 Thousand Dollars

Bitcoin Drops Sharply After Fed Statements

In the last 24 hours, Bitcoin fluctuated greatly between $113,000 and $108,000, and as of today at 16:00 TR time, it decreased to $108,500 with a loss of over 4%. This drop came after Fed Chairman Jerome Powell announced that there was no definitive statement regarding interest rate cuts in December.

Powell's Statements and Market Reactions

Jerome Powell indicated that there are divisions among Federal Open Market Committee (FOMC) members regarding a possible interest rate cut in December, and despite a 25 basis point rate cut announced yesterday, markets reacted negatively to more hawkish statements than expected. This situation highlights the division within the Fed and its adverse effects on digital assets.

Expert Opinions

Michael Pearce, Deputy Chief Economist at Oxford Economics, stated, "The unexpected hawkish comments from the Fed chairman emphasize that future moves are becoming more contentious.” He also pointed out that such statements could create a liquidity pull in the cryptocurrency markets, negatively affecting prices.

Large Outflows from Bitcoin ETFs

On the other hand, according to data from Farside Investors, Bitcoin exchange-traded funds (ETFs) trading in the U.S. recorded a large outflow of $470 million yesterday. Fidelity’s FBTC led with an outflow of $164 million, while ARK Invest’s ARKB came in second with an outflow of $143 million. BlackRock’s IBIT followed in third place with an outflow of $88 million.

Meanwhile, Grayscale’s GBTC recorded an outflow of $65 million, while Bitwise’s BITB noted a minor outflow of just $6 million. This decline came after several days of gains; on Monday, $149 million and on Tuesday, $202 million had been recorded as inflows.

The information contained herein does not constitute investment advice.