Bitcoin fell 3.2% to approximately $83,000 and Ethereum dropped 7.0% this week as Federal Reserve meeting minutes signaled potential year-end rate hikes without mentioning a path to cuts. U.S. 10-year Treasury yields hit multi-decade highs while the S&P 500 rose 1.2% to record levels, highlighting a divergence between crypto and traditional equity markets.
Spot Bitcoin ETFs recorded net outflows of roughly $679 million, the largest weekly withdrawal since June, while Ethereum ETFs saw $542 million in outflows. CoinGlass data shows approximately $1.19 billion in liquidations within 24 hours near Thursday's lows, with long positions accounting for $1.06 billion. Bitcoin dominance climbed to about 59.5%, marking the most significant internal market signal of the week.
Wintermute notes that optimism requires both long-end rates stabilizing and spot ETF inflows resuming amid the Fed's hawkish stance. Market participants are advised to monitor Wednesday’s September CPI release and upcoming financial institution and AI-related earnings reports for further direction.
BTC and ETH Slide as Rate Hike Fears Trigger $679M ETF Outflows
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