Bitcoin ETFs See Outflows as Market Faces Regulatory and Economic Uncertainty

Bitcoin's retreat from its all-time high and shifting Federal Reserve rate expectations weigh on crypto ETFs and investor sentiment.

Bitcoin's price has dropped nearly 15% from its December 2024 peak of $108,000, now hovering around $90,000, impacting crypto ETFs significantly.
Outflows from Bitcoin-linked ETFs totaled $582 million last week, reflecting waning investor confidence in the crypto market.
Federal Reserve rate cut expectations have been delayed, with analysts suggesting cuts may not occur until mid-2025, creating broader market unease.
President-elect Donald Trump's pro-crypto stance, including plans for a Bitcoin strategic reserve and a crypto-friendly SEC chair nominee, has increased institutional interest but raised concerns about speculative bubbles.
The interconnection between crypto markets and traditional finance has heightened risks, with broader financial stability at stake in the event of a crypto market crash.