Bitcoin ETFs Suffer Largest Outflow in Six Weeks Amid Rate Hike Uncertainty

U.S.-listed Bitcoin ETFs have seen their largest weekly outflow in six weeks. According to SoSoValue data, funds pulled $389.7 million from these vehicles between August 10 and August 16. This is a reversal of the previous week's inflow of $853.5 million.

The last time there was a larger outflow was during the week ending July 2, when $526.64 million left the funds.

This follows a major cold wallet hack that led investors to favor holding Bitcoin through regulated vehicles rather than self-custody. However, this renewed interest did not translate into inflows last week.

Goldman Sachs' Chief Economist Jan Hatzius believes a September rate hike is 'very unlikely.' He cites soft retail sales, slowing employment figures, and easing inflation as reasons for his prediction.

The Fed's interest rate decisions have a direct impact on demand for risk assets like Bitcoin. Rate hikes drain liquidity and pressure prices, while pauses or cuts do the opposite.