Bitcoin ETFs’ $1.2B Streak Holds Together as FOMC Takes Midterm Session

The growing competition of the crypto market and the entry of Bitcoin ETFs face a critical test Wednesday’s FOMC meeting.

A seven-day high has seen U.S. Bitcoin ETFs gain $1.16 billion, with last Tuesday’s $250.92 million the biggest single-day hit, according to SoSoValue. The increase in investor confidence is also reflected in the weekly trend, which recorded a four-week high of $2.52 billion.

ETF movements and Bitcoin rallies are largely unaffected by rising tensions in the Middle East and rising oil prices.

Bitcoin has gone up some 14% from the bottom when the US and Israel attacked Iran, while gold and the S&P 500 index fell 6.60% and 0.17%, respectively.

The divergence reflects a phase of “severe investor fatigue” followed by a re-alignment with institutions, Rachel Lin, CEO of decentralized crypto exchange SynFutures, said. Decrypt. “When forced selling ends, even a small entry can have a big impact on prices and flows.”

Entering ETFs is a double-edged sword, according to Lin. While he makes Bitcoin’s recovery to $75,000 strong, it also creates interest in economic incentives, he said. “In the absence of tangible changes in economic or regulatory expectations, we expect the entry to be short-lived rather than a one-way street.”

Experts already showed of similar concern, I realize that the ETF boom and recovery could be canceled if inflation continues and the Federal Reserve decides to keep interest rates high for a longer period of time.

The true test of the crypto market will soon take place at the policy meeting.

“Crypto markets can trade safely with limited shares,” said Gracy Chen, CEO of crypto exchange Bitget. Decrypt. “Any tone from the Federal Reserve could support riskier economies, including Bitcoin, while a hawkish stance could cause short-term volatility.”

Traders have given a 98.9% chance that the Federal Open Market Policy Committee’s two-day meeting will keep interest rates steady at 3.50% to 3.75%, according to CME’s data. FedWatch a weapon. Get started Thousands of peopleprediction market for Decrypt‘s parent company Dastan, readers put just 11% chance on the Fed to cut rates by more than 25bps before July.

Bitcoin is down 1.9% and is trading around $72,400, rebounding after Tuesday’s retest of $75,600, according to CoinGecko data. Millions of users remain hopeful of planning to attend the FOMC meeting, and distribute a 56% chance Bitcoin will reach $84,000 next time instead of going down to $55,000.