Crypto Market Takes Hit as Fed Raises Interest Rates

Bitcoin and Ether ETFs took a combined hit of $520.09 million on Wednesday after the Federal Reserve's first interest-rate increase since July 2023.

The move marked Wall Street's renewed fight against inflation, which landed squarely on the crypto market, with tighter financial conditions weighing on risk appetite.

Bitcoin ETFs recorded $295.98 million in net outflows, while Ether ETFs fared even worse with $224.11 million in net outflows.

In contrast, smaller crypto ETF categories showed greater resilience, with XRP, HYPE, and Solana funds bucking the trend by attracting modest inflows.