Bitcoin slipped to about $75,900 on Wednesday as a hawkish Federal Reserve and renewed risk-off sentiment pushed investors out of spot Bitcoin ETFs, erasing more than $490 million in three days of withdrawals.
What happened
- US spot Bitcoin ETFs recorded three straight days of net outflows — a run that wiped out over $490 million. The selling hit hardest on Monday ($263 million), then eased on Tuesday ($89.7 million) before rising again on Wednesday ($137.6 million), the day the Fed made its announcement.
- Major ETF moves: Fidelity’s FBTC led losses with roughly $191 million withdrawn, BlackRock’s IBIT (the largest spot BTC ETF by AUM) saw about $167 million leave, and Ark Invest’s ARKB lost $73.3 million.
Why markets reacted
- The Federal Reserve left its benchmark rate unchanged at 3.50%–3.75% for a third straight meeting, and Chair Jerome Powell offered no clear signal of rate cuts or softer inflation guidance ahead. That hawkish message weighed on risk assets broadly and hit Bitcoin.
- Geopolitical nerves also contributed: reports of escalating US–Iran tensions — including warnings about the Strait of Hormuz — added to market uncertainty and prompted risk-off flows.
- The Crypto Fear & Greed Index drifted back into the “Fear” zone, reflecting growing investor caution amid macro and geopolitical pressures.
Context and outlook
- The outflows come after a prolonged run of demand: spot Bitcoin ETFs had attracted money for nine consecutive days before the reversal, bringing in just over $2 billion during that stretch and almost $824 million the prior week alone.
- Bitcoin had rebounded from a low near $74,000 earlier in the month and briefly challenged $80,000 before this pullback. The $75,000 area is now in focus as a potential support test.
- Price action showed about a 3% drop following the Fed decision. Some traders remain bullish for a rebound toward $85,000–$88,000 in May, but that view hinges on steadier macro conditions and a return of inflows to ETFs.
Bottom line
Momentum that built on consecutive ETF inflows has stalled. Traders will be watching Fed signals, macro data, geopolitics and ETF flows to see whether buyers step back in or the retracement deepens.
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