Fed Chair Powell’s comments reduced expectations for further rate cuts, leading to Bitcoin ETF outflows and an 8% Solana plunge despite new U.S. ETF offerings.
Bitcoin dropped to around $109,800 after Fed Chair Jerome Powell signaled that further U.S. rate cuts are uncertain, reducing demand for BTC ETFs. U.S. investor interest in crypto weakened, with spot Bitcoin ETFs seeing a seven-day average outflow of 281 BTC and institutional traders taking profits. On-chain data shows long-term holders moving approximately 104,000 BTC per month to exchanges amid low demand. Solana’s price fell 8% to $186, wiping out year-over-year gains despite the launch of U.S. spot Solana ETFs, with Bitwise’s BSOL attracting $116 million and Grayscale’s GSOL gaining $1.4 million in early inflows.