Bitcoin News Today: BTC-Spot ETF Market Flows and Fed Rate Cut Bets
Investor Focus Will Return to the BTC-Spot ETF-Market and Flow DataOn Sunday, BTC rose by 0.31%. Following a 1.53% on Saturday, BTC ended the session at $51,697. BTC ended the week down 0.92% despite gains over the weekend.
There was no BTC-spot ETF market flow-related data for investors to consider. However, investors remained optimistic about the outlook for BTC-spot ETFs and the evolution of the crypto-spot ETF market.
Downward trends in Grayscale Bitcoin Trust (GBTC) outflows resonated over the weekend. According to Farside Investors, GBTC recorded $44 million in net outflows on Friday, the lowest since January 11.
However, BTC-spot ETF market flow data for Monday, February 26, must improve to drive buyer demand for BTC. Flow data for iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) remain the focal points. Nonetheless, ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) must contribute to the BTC-spot ETF market for net inflows to return to $2 billion.
Beyond the crypto market, sentiment toward the timeline for a Fed rate cut may influence BTC-spot ETF market flows.
Fed Rate Cut Timelines and US Inflation May Influence BTC-Spot ETF Market Trends
Probabilities of the Fed cutting interest rates in March and May declined last week.
According to the CME FedWatch Tool, the probability of a 25-basis point Fed rate cut fell from 10.0% to 2.3% in the week ending February 23. Significantly, the chances of a 25-basis point May rate cut declined from 28.0% to 19.4% over the same period. The probability of a 50-basis point May rate cut declined from 2.3% to 0.6%.
From Tuesday (Feb 20) to Friday (Feb 23), the BTC-spot ETF market saw total net inflows of $573.5 million, down from $1,778 million of net inflows from Tuesday to Friday in the previous week.
