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U.S. spot Bitcoin(CRYPTO: BTC) and Ethereum(CRYPTO: ETH) ETFs bled a combined $1.11 billion over two days after the CLARITY Act procedural vote failed and the Fed hiked rates for the first time in three years.
What the ETF Data Shows
Bitcoin ETFs lost $295.98 million on Sept. 16, adding to the $450.33 million exit the day before for a two-day total of $746.31 million. The breakdown by fund:
Ethereum ETFs deteriorated further, with outflows jumping from $141.47 million on Sept. 15 to $224.11 million on Sept. 16, the largest single-day Ethereum ETF outflow since January 30, 2026.
The two-day total hit $365.58 million, with BlackRock’s ETHA(NASDAQ:ETHA) leading at $110.03 million and Fidelity’s FETH(NASDAQ:FETH) shedding $55.58 million.
Fed Delivers First Rate Hike Since 2023
The Block reported Wednesday that the FOMC voted 12-0 to raise the federal funds rate by 25 basis points to a 3.75% to 4% target range, the first hike since July 2023.
Chair Kevin Warsh was hawkish in his opening remarks, saying financial conditions are not restrictive.
“I would be hard-pressed to describe broad financial conditions as restrictive,” Warsh said. “So we removed a dose of accommodation.” he added.
Sixteen of 18 policymakers project at least one additional quarter-point hike this year, with the Fed’s latest projections pointing to rates holding at 4.1% through end-2027.
Analysts Warn of Policy Overshoot Risk
Bitget analyst Lewis Huang told The Block that Bitcoin could absorb more of the immediate shock than equities, noting BTC moved roughly four times as much as the S&P 500(NYSE:SPY) on the prior two FOMC trading days.
He flagged a key risk: the Fed could still be tightening after the energy price impulse from the Iran conflict begins to fade, creating a policy overshoot scenario.
Gasoline prices rose nearly 4% in a month while diesel climbed 60% to an all-time high.
Where Bitcoin and Ethereum Stand Technically
BTC holds at $76,647 Thursday, range-bound between $75,000 and $82,000 with a Supertrend sell signal capping upside at $78,582.
ETH holds at $2,444, testing the Supertrend flip level at $2,442 after a sharp rejection from $2,580.
Key levels for BTC and ETH:
- BTC: $78,582 resistance, $75,000 range floor
- ETH: $2,526 resistance, $2,360 range floor
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