US Bitcoin & Ether ETFs Rebound as Powell Signals Rate Cuts

1. The Big Picture: ETFs Bounce Back on Dovish Fed Hopes

Spot Bitcoin and Ether exchange-traded funds (ETFs) in the U.S. saw a swift reversal of outflows, with $102.58 million net inflows into Bitcoin ETFs and $236.22 million net inflows into Ether ETFs, signaling renewed investor confidence. (TradingView)

This turnaround comes after a sharp exit the previous day—Bitcoin ETFs had recorded about $326 million in outflows, and Ether ETFs lost $428 million. (TradingView)

Leading the charge, Fidelity’s Wise Origin Bitcoin Fund (FBTC) took in $132.67 million, while among Ether vehicles, Fidelity’s Ethereum Fund (FETH) attracted $154.62 million. (TradingView)

Additionally, the combined assets of Bitcoin ETFs reached ~$153.55 billion, representing ~6.82% of Bitcoin’s market cap. (best exchange vietnam)

The catalyst? Fed Chair Jerome Powell’s remarks hinting at an eventual end to quantitative tightening and potential rate cuts ahead, which pivoted market expectations toward a more dovish U.S. monetary policy stance. (TradingView)

2. Macro Trigger: Powell Tilts Toward Easing

At the National Association for Business Economics conference, Powell emphasized that the Fed may soon conclude its balance sheet reduction program (quantitative tightening) and hinted at interest rate cuts if the labor market weakens further. (Best Fees Crypto Exchange 2025)

His tone suggested that the central bank is monitoring shifts in economic data closely and stands ready to respond. 

Markets reacted quickly: Bitcoin, which had dipped to ~$109,000, rebounded to ~$112,000, while Ether also regained ground. (Investing.com)

Observers noted that Powell’s dovish cues—amid weak labor signals—rekindled optimism that policy loosening is back on the table. (CoinCentral)

3. Technical & Market Sentiment: Support Holds, Eyes on Key Levels

Bitcoin has held steady around the $112,000 mark, even as U.S.–China trade friction flares. (Investing.com)
That said, crypto markets remain vulnerable to macro volatility, with external shocks or hawkish Fed pivots able to derail momentum quickly. (The Economic Times)

Technical analysts point to a critical support band around $110,000–$112,000, with resistance looming near $115,000–$118,000. A breakout above resistance could fuel further upside. (mint)

Sentiment is in flux: while the rebound in ETF flows is encouraging, trade tensions and macro uncertainty still inject caution into the market. (mint)

4. Why This Matters: Liquidity & Rotation Back Into Crypto

The sudden flip from outflows to inflows in ETFs underscores how sensitive crypto capital is to monetary policy signals.

When rate cuts are expected, investor demand tends to chase yield, pushing capital into high-risk, high-reward assets like BTC and ETH. Powell’s hints have revived that narrative. (TradingView)

Moreover, ETF inflows often represent institutional allocation, not just speculative retail trades—this suggests deeper conviction behind the rebound.

Also worth noting: the rebound comes amid prior stress in crypto markets, including a historic liquidation last Friday that wiped out more than $19 billion in leveraged positions. (TradingView)

Crypto investment products still showed resilience: despite the crash, they logged ~ $3.17 billion in inflows over the week. (TradingView)

5. Risks, Caveats & What Could Go Wrong

• Policy Reversal: If Powell or other Fed officials revert to hawkish rhetoric (e.g. inflation surprises), the momentum could reverse sharply.

• Macroeconomic Surprises: Strong inflation or shocking employment data could negate easing expectations.

• Geopolitical Tensions: Escalation in trade disputes or global risk events could override policy-driven capital flows.

• Liquidity Crunch: In stressed markets, even modest outflows could trigger cascade effects in crypto due to its lower liquidity compared to equities or bonds.

6. What to Watch Next

• Fed Meeting Minutes / Statements: Clarity on timing and magnitude of rate moves will be crucial.

• U.S. Labor Market Data: Jobs, wages, and unemployment trends may validate or derail the dovish narrative.

• ETF Flow Trends: Sustained inflows over several days would reinforce structural reentry by institutions.

• Support & Resistance Breaks: Price action around $110K–$115K levels will indicate market conviction.

• Macro & Geopolitical News: Tariff announcements, trade deals, or global shocks could quickly upset balance.

7. Outlook & Potential Scenarios

Base case: With Powell signaling easing, Bitcoin and Ether could see continued inflows and a sustained rebound—potentially challenging prior highs in the $120K–$130K zone if macro conditions remain supportive.

Bullish scenario: A dovish pivot coupled with strong inflows and weakening dollar could propel energies into a full-blown crypto rally, pulling altcoins upward too.

Bear case: If inflation surprises or geopolitical stress rise, any rebound could be short-lived—leading to renewed outflows and downside pressure.