FOMC

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Investment products focused on digital assets have seen a significant outflow of $600 million. This is the largest since March 22, 2024, and is likely a result of a more hawkish-than-anticipated FOMC meeting. This has created a bearish trap in the BTC/USDT market. 
Also Read: <a href="https://www.cryptopolitan.com/australia-launches-first-spot-bitcoin-etf/">Australia launches first-ever spot Bitcoin ETF</a> 
The crypto market is in the red today. The reason? FOMC market effects. The market has shed millions in losses, and investors have pulled back investments.&nbsp; Due to recent outflows and a price sell-off, total assets under management (AUM) tanked from over $100 billion to $94 billion in just one week. 
<h2 class="wp-block-heading" id="fomc-meeting-triggers-600m-crypto-outflows">FOMC meeting triggers $600m crypto outflows</h2> 
A significant amount of money, totaling $621 million, was withdrawn from Bitcoin (BTC). Investors are showing a bearish sentiment, resulting in $1.8 million flowing into short-Bitcoin products. This suggests that some investors are anticipating further price declines. 
<a href="https://etp.coinshares.com/knowledge/market-activity/fund-flows-17-06-24" rel="nofollow noopener" target="_blank">Trading volumes </a>for the week are currently at US$11bn, which is lower compared to the weekly average of US$22bn this year. However, it is significantly higher than the US$2bn per week recorded last year.&nbsp; 
<figure class="wp-block-image"> 
 <figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXfpZTLIRybP9v_7DkMtBJLSFrjfL9h3X9zRpbwzJ1yx4kZo_hxTOhoCpc68vFrlJW6GiHsVtFe8AdN7T5yjAjOdkgUe5gw9zwLi8c_8cApn8d80cxCCvvIX9C37A6wXauxxPQsBXchfOAzBTmSWKjWBhBO6?key=P1WL48TRflq7_a62ClHPMg" alt="" width="1300" height="613">
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 Source: CoinShares
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</figure> 
Digital asset exchange-traded products (ETPs) continue to hold a consistent 31% share of global trading volumes on reputable exchanges. 
From a regional perspective, the United States experienced the highest outflows, amounting to a total of $565 million. However, it is important to highlight that the negative sentiment was not exclusively concentrated in the US. Canada, Switzerland, and Sweden experienced outflows of $15m, $24m, and $15m, respectively. Germany went against the norm and saw inflows of US$17m. 
<figure class="wp-block-image"> 
 <figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXcSS49dyOSOXeA3EIi2Sk02xeya97QT6lo8bpJ5iULdaaRgaTaD1VuhUVtya_N6n2PqsZkY1e8YPoZpT5sqtgXS31mKokSEJEP_iQe20i6GrbTU514SlzlAuul5jiHWHgbyXQZ9Vip3pUq5XVZ1d2LFwTuF?key=P1WL48TRflq7_a62ClHPMg" alt="" width="1600" height="1066">
 <figcaption class="wp-caption-text">
 Source: CoinShares
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</figure> 
At the FOMC meeting on Wednesday last week, Powell announced that the current interest rates will remain unchanged at between 5.25% and 5.5%. He added, “Inflation has eased over the past year but remains elevated.”&nbsp; 
According to Fed Chair Jerome Powell, central bankers are currently monitoring the progress in reducing inflation before considering a rate cut. 
<h2 class="wp-block-heading" id="crypto-markets-see-red">Crypto markets see red</h2> 
On Monday, markets witnessed the worst trading in 48 hours. Onchain data shows a bearish trap detected in the BTC/USDT market. The recent decline to $66K indicates an oversold crypto market present. 
This decline appears to be a classic bearish trap aimed at shaking out inexperienced crypto traders. The oversold RSI suggests a potential rebound. Other than that, the majority of the crypto market is in the red. 
<figure class="wp-block-image"> 
 <figure style="width: 100%" class="wp-caption alignnone">
 <img loading="lazy" decoding="async" src="https://lh7-us.googleusercontent.com/docsz/AD_4nXdV56IOksjjKxktf9Zft1v6g2boL8ZVnquDphqNBBWfXkGg9-Y8qbXbBkDjO9M-h3XIDvJUFY1pBOTituX23OvninTh7YUlnnSg5O7mz9nzCw4bu5lqmXa422J-ARw4tEmY5XZvzSQPBi72gVizO_VDvyEA?key=P1WL48TRflq7_a62ClHPMg" alt="" width="1600" height="508">
 <figcaption class="wp-caption-text">
 Source: CoinGecko
 </figcaption>
 </figure> 
</figure> 
Today, the value of Ethereum (ETH) stands at $3,521.05, reflecting a slight 0.7% increase within the last hour and a 2.3% decline in the last 24 hours. The current value of ETH is 4.5% lower than its value a week ago. Meanwhile, ether-based investment products avoided the trend, attracting $13 million in net inflows globally last week.&nbsp; 
In addition, Solana (SOL) is valued at $143.52, reflecting a 1.3% increase within the last hour and a 3.4% decline compared to the last 24 hours. The current value of SOL is 11.1% lower than its value 7 days ago. 
Also Read: <a href="https://www.cryptopolitan.com/binance-heyi-discusses-security-emails-to-cz/">Binance’s Yi He discusses crypto listings, security, and daily emails to CZ</a> 
The current price of BNB is $605.78 per (BNB / USD), and its market cap is $89.40B USD. The trading volume for the past 24 hours stands at $1.71 billion USD. 
Cryptopolitan reporting by Florence Muchai

Bitcoin FOMC watch – Investors pull $600m from the crypto market

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