Bitcoin Updates: Federal Reserve's Cautious Pause Triggers $550 Million Outflow from Crypto ETFs as Bitcoin Approaches $100,000 Support Level

On October 29, Bitcoin's value plunged to $108,325.44 as uncertainty surrounding the Federal Reserve's next moves led to $550 million being pulled from crypto exchange-traded funds, reflecting mounting investor anxiety as Bitcoin neared the critical $100,000 support mark. Analysts referred to the sharp decline as a "capitulation" phase, which happened as the Federal Reserve indicated its latest 25-basis-point rate cut could be the final one for 2025, thereby heightening volatility in the cryptocurrency sector, according to

.

As reported by Coinpedia,

ETFs experienced net withdrawals totaling $470.71 million, with Fidelity's FBTC seeing the largest outflow at $164.36 million. The joint fund from Ark & 21Shares lost $143.80 million, while BlackRock's IBIT, Grayscale's GBTC, and Bitwise's BITB together saw $159.12 million leave. This downturn sharply contrasted with the previous day's inflows, as investors pulled back due to concerns about a sustained period of low interest rates, the report stated.

Ethereum ETFs performed somewhat better but still faced $81.44 million in net outflows. Fidelity's FETH led with $69.49 million withdrawn, while Grayscale's ETH and ETHE products saw outflows of $16.18 million and $12.83 million, respectively. BlackRock's ETHA was the only fund to buck the trend, attracting $21.36 million in new investments. In total, Ethereum ETF trading volume climbed to $2.43 billion, but its market capitalization dropped by 2.68% over the past day to $471.23 billion, Coinpedia observed.

The recent market upheaval reflected broader declines across the crypto landscape. Bitcoin's daily trading volume jumped to $64.45 billion, but its total market value slipped to $2.17 trillion as it fell below the key $110,000 level. Ethereum's trading volume reached $38.44 billion, though its share of the overall market cap now stands at just 5.58%, according to Coinpedia.

Experts link the selloff to comments made by Powell at the Fed's October meeting, which hinted at a halt in rate reductions for 2025. "Markets are now factoring in a longer period of dovish policy, which spells trouble for crypto," one strategist explained, noting that higher interest rates tend to negatively impact assets with longer-term cash flows—a point Coinpedia emphasized.

The ETF withdrawals underscore a broader change in investor outlook. Bitcoin's total ETF assets under management have dropped to $149.98 billion, making up 6.75% of its total market value. For

, ETF holdings declined to $26.60 billion, or 5.58% of its market cap. Although these numbers are still high compared to earlier this year, the recent withdrawals suggest waning faith in crypto's ability to outperform traditional investments as monetary policy tightens, Coinpedia noted.

---