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U.S. spot Bitcoin(CRYPTO: BTC) and <a href="https://xpertsstudio.com/bitcoin-ethereum-xrp-face-headwinds-as-fed-decision-looms/” title=”Bitcoin, Ethereum, XRP face headwinds as Fed decision looms”>Ethereum(CRYPTO: ETH) ETFs bled a combined $591.80 million Tuesday, their worst single-day outflow in months ahead of Wednesday’s Fed decision.
What the ETF Data Shows
Bitcoin ETFs led the retreat with $450.33 million in net outflows, their largest single-day withdrawal since June 25 The breakdown by fund:
Bitcoin ETF trading volume climbed to $4.35 billion despite the outflows. Combined net assets now sit at $95.72 billion with cumulative net inflows at $54.86 billion.
Meanwhile, Ethereum ETFs posted their largest single-day outflow in 155 trading sessions at $141.47 million.
BlackRock’s ETHA(NASDAQ:ETHA) drove most of the damage at $97.97 million, with Bitwise’s ETHW(NYSE:ETHW) losing $34.40 million.
Why the Fed Decision Makes This Tricky
CoinDesk reported Wednesday that Brookings Institution senior fellow Robin Brooks warned Wednesday’s Fed meeting is a “nightmare” for Chair Kevin Warsh.
Markets have fully priced in a 25-basis-point hike to a 3.75% to 4% target range, and nearly every major investment bank expects at least one more hike before year-end.
The problem is that Warsh cannot realistically deliver a message hawkish enough to match what markets have priced in.
“Tomorrow’s Fed meeting is a nightmare for Warsh. There’s no way he can live up to all the hikes priced, so the press conference will likely disappoint markets. The dollar is likely to fall and long yields likely to rise,” Brooks said.
A weaker dollar typically supports Bitcoin and gold, both of which carry a well-documented negative correlation to the US Dollar Index.
Bitcoin and Ethereum Price Analysis: Key Levels to Watch
Bitcoin holds around $76,000 Wednesday, pulling back under pressure from two back-to-back catalysts: the CLARITY Act’s Senate defeat Tuesday and today’s Fed rate decision at 2:00 p.m. ET.
The 20-day EMA at $76,866 sits just overhead as immediate resistance, with RSI at 49.19 showing a bearish divergence that formed when price hit $82,000 in early September while momentum failed to confirm.
Ethereum holds at $2,402 with the Supertrend flipping bearish right at current price, adding to the cautious setup ahead of the Fed.
BTC and ETH levels to watch:
- BTC: $76,866 resistance (20-day EMA), $73,551 support (50-day EMA)
- ETH: $2,431 resistance (20-day EMA), $2,350 trendline support
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