Spot Bitcoin exchange-traded funds in the U.S. flipped to inflows on Jan. 28 as Bitcoin reclaimed $102k, with the market bracing for the upcoming FOMC meeting.
According to data from SoSoValue, the 12 Bitcoin ETFs returned to net inflows on Tuesday, with $18.44 million entering the funds. This followed a $457.48 million outflow the previous day, as investor sentiment turned risk-off amid concerns over the rising popularity of the Chinese AI app DeepSeek, which contributed to a sharp drop in both tech stocks and the crypto market.
All of the inflows recorded yesterday came from BlackRock’s IBIT, which attracted $30.14 million from investors. The spot Bitcoin fund currently has total net inflows of nearly $40 billion, while its net assets stand at $58.76 billion.
Meanwhile, ARK and 21Shares’ ARKB recorded an outflow of $11.7 million, partially offsetting the day’s inflows. The remaining Bitcoin ETFs saw zero flows on the day.
The total trading volume for the 12 BTC ETFs stood at $2.49 billion on Jan. 28 much lower than the $4.8 billion recorded the previous trading day.
After briefly dipping near $100,000, Bitcoin (BTC) has rebounded to around $102k at the time of writing. Over the past 24 hours, the cryptocurrency has held steady above the six-figure mark as the market anticipates the upcoming Federal Open Market Committee (FOMC) meeting, set to begin in less than 13 hours.
According to CME’s FedWatch tool, there is a 98.4% probability that the Federal Reserve will keep interest rates unchanged at 4.25% to 4.50%. Market commentators expect Bitcoin to experience increased bearish volatility if Fed chair Jerome Powell maintains a hawkish stance on monetary policy.
Matt Mena, a crypto research strategist at 21Shares, told crypto. news that the likelihood of a rate hike is “effectively zero” given the recent instability in equity markets. However, he noted that an unexpected 25 basis point rate cut could serve as a strong catalyst for a rally across risk assets, including Bitcoin.