Key Points
- Bitcoin ETFs in the U.S. experienced inflows on Jan. 28 as Bitcoin’s value rose to $102k.
- The market is preparing for the upcoming FOMC meeting, potentially impacting Bitcoin’s volatility.
Bitcoin exchange-traded funds (ETFs) in the United States saw an increase in inflows on January 28. This happened as the value of Bitcoin rose to $102,000.
Data from SoSoValue showed that the 12 Bitcoin ETFs had net inflows on Tuesday, with $18.44 million entering the funds. This was a reversal from a $457.48 million outflow the previous day. The change was due to investor sentiment shifting due to concerns over the rising popularity of the Chinese AI app DeepSeek. This app’s popularity contributed to a significant decrease in both tech stocks and the cryptocurrency market.
Specific ETF Performances
All inflows recorded on the day came from BlackRock’s IBIT, which attracted $30.14 million from investors. The Bitcoin fund currently has total net inflows of nearly $40 billion, with net assets standing at $58.76 billion.
On the other hand, ARK and 21Shares’ ARKB saw an outflow of $11.7 million, which partially offset the day’s inflows. The remaining Bitcoin ETFs saw no flows on that day. The total trading volume for the 12 BTC ETFs was $2.49 billion on Jan. 28, significantly lower than the $4.8 billion recorded the previous trading day.
Bitcoin’s Market Performance
After a brief dip near $100,000, Bitcoin (BTC) rebounded to around $102k. Over the past 24 hours, the cryptocurrency has held steady above the six-figure mark. This is as the market anticipates the upcoming Federal Open Market Committee (FOMC) meeting, set to begin in less than 13 hours.
According to CME’s FedWatch tool, there is a 98.4% probability that the Federal Reserve will maintain interest rates at 4.25% to 4.50%. Market commentators expect Bitcoin to experience increased bearish volatility if Fed chair Jerome Powell maintains a hawkish stance on monetary policy.
Matt Mena, a crypto research strategist at 21Shares, believes that the likelihood of a rate hike is “effectively zero” given the recent instability in equity markets. However, he noted that an unexpected 25 basis point rate cut could serve as a strong catalyst for a rally across risk assets, including Bitcoin.
