Bitcoin, the pioneer cryptocurrency, managed to stabilize around the $59,000 mark following a tumultuous period triggered by the U.S. Federal Reserve’s recent decision. Chair Jerome Powell’s announcement of maintaining the benchmark interest rate sent ripples through the market, reassuring investors about the economy’s strength but disappointing some with its stance on inflation.

Market Response to Fed’s Decision

After losing the critical $60,000 support level on Tuesday, Bitcoin experienced a sharp dip to $56,500, compounded by substantial outflows from U.S. spot ETFs amounting to $563.7 million, marking the highest daily figure since their listing in January. As of the latest update, Bitcoin’s price stands at $58,282, reflecting a 1.4% increase over the past 24 hours. The broader digital asset market has also shown signs of recovery, with altcoins like SOL and AVAX leading the charge.

ETF Outflows Reflect Investor Sentiment

The outflows from spot bitcoin ETFs continued for the 11th consecutive day, totaling $563.7 million on Wednesday. Notably, Fidelity’s FBTC and Grayscale’s GBTC were among the ETFs witnessing significant withdrawals, indicating the sensitivity of Bitcoin and other risk assets to changes in liquidity conditions.

BlackRock’s Insights on Bitcoin ETFs

In a recent interview, Robert Mitchnick, head of digital assets at BlackRock, highlighted a potential shift in investor demographics for bitcoin ETFs. He predicts a wave of inflows from institutional players such as sovereign wealth funds, pension funds, and endowments in the coming months. Mitchnick emphasized that BlackRock has been engaging with these institutions for years, hinting at pent-up demand for exposure to bitcoin through ETFs.

As Bitcoin navigates through market uncertainties, the evolving landscape of investor participation and regulatory developments will continue to shape its trajectory in the foreseeable future.