Bitcoin Slumps Amid FOMC Jitters and ETF Outflows
Bitcoin traded near $63,565 on July 28, 2026, down 3% in 24 hours as investors braced for a potential interest rate hike by the Federal Reserve. The looming FOMC meeting has put pressure on crypto markets, with substantial outflows from US spot Bitcoin Exchange-Traded Funds (ETFs) adding to the uncertainty.
Data shows that these ETFs experienced net outflows of $240.1 million on July 24 alone, contributing to a two-session cumulative withdrawal exceeding $465 million. This trend signals waning institutional demand, a critical factor given that institutional investors have been pivotal in supporting Bitcoin's price in recent years.
The divergence between whale and retail investor inflows highlights a bifurcation in market sentiment. While large investors are retreating, individual investors appear more resilient, with retail participation remaining relatively stable.