Key Insights:

• Bitcoin (BTC) and Ethereum (ETH) ETFs experienced outflows of $582 million and $159 million respectively last Wednesday.
• BTC's value fell to as low as $92,500 during this period.
• Recent Federal Reserve minutes raised concerns about inflation as a result of policies proposed by President Trump.

Summary:

Investors made significant withdrawals from U.S.-listed Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs) on Wednesday due to prevailing macroeconomic uncertainties affecting cryptocurrency price forecasts. A total of eleven Bitcoin ETFs recorded a net outflow of $582 million, which marks the second-highest outflow since their inception, according to data provided by SoSoValue. This outflow was just short of the record withdrawal of $680 million recorded on December 19.

Leading these outflows was Fidelity’s FBTC, which saw a loss of $258 million, while BlackRock’s IBIT followed with a loss of $124 million. Furthermore, Ether ETFs experienced withdrawals totaling $159.3 million, the highest withdrawal since July 26, when $162 million was withdrawn.

These significant outflows come amid renewed fears surrounding U.S. inflation, contributing to increased volatility in the bond market and negatively affecting risk assets. Over three days, the price of Bitcoin dropped nearly 8.5%, failing to maintain trading above the $100,000 threshold.

According to minutes from the Federal Reserve’s meeting on December 18, officials indicated that a slower pace of policy easing may be necessary, reflecting apprehensions about inflation linked to President Trump’s policies.

Despite these concerns, some analysts express optimism, anticipating a market rebound following the upcoming nonfarm payroll report on Friday. "This report is significantly anticipated, as it will provide essential insights into the U.S. economy's health. We recommend maintaining substantial exposure to digital assets," noted Valentin Fournier, an analyst at BRN.