Live markets: Bitcoin and ether ETFs lost $111 million combined as rate-cut hopes died

Spot Bitcoin and Ether exchange-traded funds (ETFs) experienced combined outflows of $111 million this week, marking a significant shift as investor optimism for Federal Reserve interest rate cuts diminished. The total cryptocurrency market value has remained relatively stable, hovering around $2.26 trillion since Tuesday, but the recent outflows from these ETFs indicate a renewed caution among investors. This trend follows the Federal Reserve's recent signals that suggest a delay in anticipated interest rate reductions, a move that typically influences investor appetite for riskier assets like cryptocurrencies. The halt in the recovery momentum for the crypto market is directly linked to the fading hopes of imminent rate cuts, which had previously fueled a surge in digital asset investments. The outflows from Bitcoin and Ether ETFs, specifically, highlight a recalibration of investment strategies in response to the evolving macroeconomic outlook. For instance, on Thursday, the combined net outflows from these products reached $111 million, a stark contrast to previous periods of inflows. This data underscores the sensitivity of the digital asset market to monetary policy expectations and broader economic indicators, with investors re-evaluating their positions as the prospect of lower borrowing costs recedes.